Why Your Home’s Value Is Going to Stay Strong
There is a lot of fear in the media these days: Zillow is reporting the first dip in home values since 2012 and CNET is projecting that fixed rate mortgages are going to stay on the rise. But what does all this mean? Let’s unpack these headlines:
Zillow’s reported decline in value is a whopping 0.1% which amounts to an approximate average of $366 per home. What we’ve been experiencing in the past decade is a steady market growth followed by an absolute red-hot market over the past two years. It is only to be expected that eventual market fluctuations will occasionally occur. Is this a sign of the end of strong home values? Absolutely not! And more on that later…
It’s no secret that interest rates have been steadily creeping up this year which is a reflection of both how low they’ve been as well as to curb inflation as we come out of the COVID emergency. While higher ratesdo affect the purchasing power of many consumers, they’ll have to go up a lot more before the market really feels a significant shock.
While these two trends do have a minor effect on the market, what’s going to make the real difference here is in the reporting of the trends. As usual, the media will sensationalize the most minute negative data to get people to pay attention to their stories. In the coming weeks and months, we are going to continue to see headlines about how interest is going up and that it’s going to kill the real estate market and we are all going to die hapless and broke.
What isn’t being talked about is that long before any of us go bankrupt, this kind of sensational reporting is going to scare a lot of folks away from selling their homes. Once that happens, the supply shortage is going to keep those home values strong and steady. Don’t let alarmist reporters frighten you away from taking advantage of this market as it continues to remain HOT HOT HOT!!! Now is the time when the savvy homeowners are listing their properties to maximize return due to the lack of inventory and competition in the marketplace.
With over 36 years of experience working with real estate in Southern California, Ultimate Properties’ award-winning team thrives on a profound perception of the market trends in your area.
We will be happy to provide you a free current valuation of what each of the floor plans has sold for in your neighborhood!
Give us a call at (714) 632-7444 to schedule an appointment and visit our website, www.ultimatepropertiessold.com to see why your neighbors have been trusting our team for over three decades!