We have numerous buyers and sellers sitting on the sidelines because there is just too much Fear, Uncertainty, and Doubt. It seems to be paralyzing everyone, and I thought I’d provide some positivity… again.
1. HOUSING CONTINUES TO APPRECIATE!
The below chart showing housing appreciation from various sources was borrowed from MBS Highway – as two reports recently surfaced from CoreLogic and Black Knight that show housing appreciated once again! The reason is strong demand and tight/declining inventory, and there is no reason to believe this trend will change. So, this is one more reason for all of us to ignore the “housing crash” predictions that continue to surface.
2. RATES WILL FALL
Rates always fall when recessions set in, and if we are not in a recession now, we will be very soon.
MBS Highway informed us of several great indicators recently: (1) Trucking Survey shows we are at levels we have not seen since the worst of the COVID crisis or the 2008 GFC; (2) Europe now appears to officially be in a recession; and (3) Initial jobless claims just hit a 20-month high.
Stephanie Pomboy recently tweeted this too: “…just as everyone has concluded the worst is behind us, a look at the history of the Leading Indicators and recessions shows the [Leading Economic Indicators Index] peaks 8 months before the recession begins…. We dropped -4.4% last Oct…which is precisely 8 months ago. Recession is NOW.”
Many analysts remind us that falling GDI (Gross Domestic Income) is a certain indicator of recessions, and GDI has been falling steadily.
So, rates are expected to fall, and people buying today will be able to refinance into a lower rate. (reminder: housing typically does well in recessions AND real estate is king of the asset jungle and always trends up.)
So Buyers you win! Buy now; Enjoy 5% appreciation – made better by the leverage factor and refinance into a lower rate when rates fall.
Sellers, you also win, as your home has continued to appreciate, and there are ready, willing and able buyers right now ready to purchase.
Isn't it time to make your housing dreams a reality? Ready to go House Hunting with the Dayna Wilson Real Estate Team?
Source: JVM Lending