May 03, 2022

Have We Reached the Peak? What Goes Up Must….

May 03, 2022/ Erica Petri

Anyone owning a home today is thrilled to see the incredible appreciation over the last 5 years. Just this year we have seen a 19% increase in home values! That can put a smile on your face but as we all know too well, what goes up must come down. That old saying holds true in every sector of our economy, including housing. Not too long ago, interest rates were at all-time lows at 2.8% for a 30-year fixed rate. We are now approaching 6% for that same 30-year mortgage. Imagine you are trying to buy your first home and not only rates have gone up, but home prices have skyrocketed. There is a breaking point where young buyers will back away from submitting an offer and wait for homes to become more affordable for their budget.

October 07, 2021

New Real Estate Market Requires New Strategies

October 07, 2021/ Erica Petri

Yes, the real estate market has finally peaked. Since 2016, we have seen 30% increases in property values on average in most areas. That is truly unprecedented in such a relatively short period of time. Record low interest rates (still hovering around 3% for a 30-year fixed rate mortgage) as well as a mountain sized group of millennial purchasers have contributed to this real estate owner’s bonanza. Warning: all that goes up…you know the rest. Thankfully we have stability right now in our financial markets. However, buyers are beginning to move to the side lines for two main reasons: first they grew tired of competing with other rabid purchasers and losing out on a home purchase, and second the price points have increased to where the current sticker price is turning young families away from submitting an offer. They want to wait for prices and inventory to trend to their benefit.

May 13, 2021

Is the Real Estate Pendulum Finally Moving…?

May 13, 2021/ Erica Petri

Supply and demand. That has always been the driving force in real estate. If too much supply and too few buyers, prices will fall, and properties will take much longer to sell and sell at a discounted price. This was displayed in the recession of 2008. Fast forward to 2021, and supply is at an all-time low with the buyer population at an all-time high. To add to today’s frenzied market, interest rates are at an all-time low. These are more “all-times” never seen in the long history of this country’s housing market.