The market this year may become one of the most fierce and intense buying cycles that Real Estate industry has ever seen! ( It sounds weird saying this considering last year was record breaking)
That being said I would like to lay the ground work for some things that I believe we should all be mindful of in this new prospective buying and selling cycle. To start things off let’s talk about the big bad inflation that has been running rampantly hot the past two years with the new high reaching and “hopefully” peaking at 7%. This one is fairly simple : inflation rises = cost of standard goods increase.
The next topic that I feel should be addressed is the lack of inventory which when paired with inflation is cause for an almost domino like effect. Prices rise and inventory drops and thus work starts to disappear so on and so forth. This situation would maybe look different if global supply shortages were not caught up in the mix. ( Not saying this will happen but it is certainly something to take into account)
The last issue that I would like to draw attention to is the spike in housing prices nation wide (here in the cent-tex area we saw highs of 24% price increase over 12 months). If the feds interest rate hikes do not work to taper the above mentioned issues… then we should all buckle up because it’s about to be one very bumpy road.
I promise that I am not a pessimist unlike the greater majority of the free market but I am taking a all the knowledge at hand with some consideration when deciding how my self and my clients will work to navigate the markets this year.
Many homeowners and first time buyers may find themselves scratching their heads when figuring out what direction to go in this market, if that is you then our exclusive clientele page could help solve that very problem.
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