Over the last several years, home prices have increased substantially throughout the country. Many homeowners are worried that this means we’re headed towards another housing crash.
Luckily, that’s not the case. We’ve written about it at length, but the real estate market is not heading towards a crash. While it’s true that home values are not increasing as dramatically as they have in the past five years, they’re by no means crashing or even declining.
Here’s What’s Going On
It’s not that the average price of homes in the market are decreasing. Rather, the appreciation of home values is slowing down.
This is because the market is shifting from an advantageous sellers market, to a more “normal” market where the intense demand of homes is matched by its inventory. That doesn’t mean we’re headed towards a crash!
The real estate market is stronger than it’s ever been.
This is Different than the 2008 Crash
The last real estate market crash was caused in large part to extremely lenient mortgage standards. This created an artificial demand for new homes.
When this demand faltered, a rush of homes hit the market. Many of these properties were in distress or suffering from foreclosure, so they were heavily discounted.
Plus, mortgage standards are much stricter today than they were in 2008. In addition, foreclosures today are lower than they have been since 1996.
Home Prices are Leveling Up
And that’s a good thing! It means the market is returning to “normal,” which is good for buyers and sellers.
Want to Learn More About the Greater Raleigh Real Estate Market?
Then it’s time to give Linda Craft & Team REALTORS® a call. We have the area expertise and the real estate resources you need to make a wise financial decision in this highly competitive market.
Please reach out to us today so we can get started on achieving all your real estate goals.