Direction of our Real Estate Market

I was thinking about the real estate market and everything that is going on globally, nationally and local. Yes, nationally we all are experiencing a shortage of inventory in the market, but still, you will find many properties overpriced and taking longer to sell. Part of today’s real estate market is deja vu of the 2005 market where owners were trying to sell for 20 to 30 percent more than their properties value. I worked those early years and many homeowners were left holding the “bag” and couldn’t sell as the housing market was collapsing. Selling in that market and chasing the market down is a sick to the stomach feeling and you have no answers for your sellers when the market becomes unpredictable.
One of the main reasons for the collapse of the real estate and investor market in 2005 was due to years of “easy” money and “no checks and balances” of the mortgage and appraisal industry.
Does anyone see any similarities taking place today? I do. Hard money for fix and flips are readily available for anyone with good credit, prices are rising, in some areas faster than others, and bidding wars on many properties. The difference is mortgage bankers and brokers are doing their due diligence, and appraisers are still conservative with their opinions of value.
Everyone needs to recall and learn from history. The need to be cautious and make sure when and if the market changes you have an action plan.
I do see a market correction coming; I just don’t have a crystal ball of the timing. It depends on many factors which I will be discussing in future blogs

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