A Market Shift Is on the Horizon. Are You Prepared?

    Home Valuation | Search the MLS

     

    Are we in a real estate bubble that’s about to burst?

    In a word: no. Our market today isn’t nearly the same as it was in 2007 when the last bubble burst. Lending and appraisal guidelines and requirements have tightened up, and there’s much less fraud and irresponsible lending going on. Unemployment continues to be low and home values are skyrocketing. In Utah alone, we saw an 8.4% increase in home values year-over-year.

    The home price expectation survey is a nationwide panel of over 100 economists, real estate experts, and investment marketing strategists who make predictions about the national real estate market. All combined projections point to a 19.5% increase in home value by the year 2020. Even the bears say that values are going to go up. Utah will be one of the hot markets to watch over the next few years.

    “Utah is a market to watch in the coming years.”

    If you’re thinking of moving up into a new home, now is a great time to get your home sold and buy a new one. If you’re downsizing, you might want to wait a few more years.

    Either way, each situation is different. If you have any questions about your own personal situation, give me a call or send me an email. I look forward to hearing from you.

     

     

    Trackback from your site.


    7 Responses to “A Market Shift Is on the Horizon. Are You Prepared?”

    • Virginia Johnson

      Written on

      Do you recommend that we sell now and rent till it bursts?

      Reply
      • Andrew Ford

        Written on

        If you are selling, I’d buy now while interest rates are still low. The affordability index is still strong with low interest rates. If you wait until rates go back to 7-8% range and buy, even if prices drop down, it could cost you more.

        Reply
      • Andrew Ford

        Written on

        Thank you for your comment and watching the video Virginia

        Reply
    • Dan

      Written on

      Hi,
      I enjoyed your video. I have been a broker in Southern, CA for more than 40 years. In late 2005 when most of the real estate prognosticators said real estate would increase approximately 15% in 2006, I went on record saying Inpredicted a sharp decline followed by an even sharper, longer term decline. What we saw, as you know, was dramatic. I agree with you that today’s environment is different but the reality, at least for Southern, CA, is that real estate values have ballooned to what they were when they peaked in September 2005. The problem is that there is huge disparity between income growth and the cost of real estate and when the affordability factor becomes too strained, something has to give. I do not foresee anything like the 2006 a 2009 bust, but I believe we are entering a high risk scenario where real estate could be stagnant to anywhere between a 10 to 20% decline over the next two to three years. If there’s no urgency to buy, I highly recommend postponing the purchase of a property at this time. Cheers, Dan

      Reply
      • Andrew Ford

        Written on

        Thanks for the comment and interest Dan. The affordability index is still strong for purchase in a home for now due to low interest rates, even with escalating prices. If Interest rates do go up, we could see ourselves in a problem for sure.

        Reply
    • Joey Payne

      Written on

      Andrew great information! We appreciate how thorough your video is.

      Reply

    Leave a Reply