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Good morning, This month we are going to be talking about the Recession and how this will affect the housing market.
First thing first, of course, I can’t predict the future we can only watch different indicators and see where things are going.
“What is a Recession?”
Let’s start with, What is a recession? it is “identified by a fall in GDP in two successive quarters.” If you go to the Bea.gov website we can see Q1 we reported a loss. Q2 ends June 30th. Probably in the coming months will be hearing it be officially reported but will have to see.
So what does this mean for the housing market?
Likely what it means is that we are going to see a slight slow down. Honestly, I think the market will finally come to its senses and normalize. As Ryan Pineda mentioned, 20 offers on 1 house is not normal.
We still have a shortage of at least 5,000,000 houses reported on the low end which will take years to build. That is topped with the demand of folks still wanting homes.
“But what about the interest rates?”
Yes, they have crept up, However, they are still pretty low if you look at the history of rates. We will probably touch 6% soon enough. The fed announced 4 hikes this year so stay tuned.
For Sellers
For my sellers, It’s still a good time to sell if you need to. You can take advantage of the market I wouldn’t expect 20 offers but competitive offers for sure if we can price it right and such.
For Buyers
For my buyers, I’m optimistic! I believe that many have given up or want to wait for this whole recession thing to settle leaving a potential opening for those that CAN purchase. Today is still the cheapest house prices will ever be in Houston.
What are your thoughts?
Thanks for reading! Be safe, Drive safe, and Drink water!
Sincerely, Evan Salinas
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