Are you worried about the real estate market crashing and what that might mean for your home’s value? A lot of homeowners are in the same boat. But let’s get the record straight, with a few basics you need to know!
First, the market isn’t likely to crash. Even though our current market has been a bit crazy, it’s very different from the market in 2008. In 2008, the market was built on speculation and artificial inflation that created a bubble. Right now, our market is built on the true market forces of supply and demand. That demand isn’t just going to disappear overnight, nor is the supply of available homes going to suddenly increase. As a result, we are not at risk of the market crashing.
But here’s what you need to keep in mind: just because the market isn’t going to crash doesn't mean that it won’t slow down. That’s exactly what we’re seeing now in most areas. Because of rising interest rates, talks of recession, low supply of homes, and buyers getting priced out of the market, demand is starting to slightly decrease. In many markets, we are starting to see listing prices plateau and slowly decrease in response to the lesser demand.
To recap: you shouldn’t worry about your home’s value tanking overnight like it may have done in the 2008 market crash. But, depending on your location, you’re probably not likely to see your value skyrocket like it’s done over the past couple of years. You may even see that value start to decrease by a few thousand dollars. This is nothing to worry about; it’s just the way that the real estate market ebbs and flows, like the stock market.
If you’re looking to sell your home, now might be the best time to do so! Selling now will ensure that you’ll get your home sold near the top of the market and before demand decreases more. But if you don’t want to sell your home, don’t feel pressured into doing so.
No matter which way you’re learning, now is a great time to get the stats on your neighbourhood’s market and your home. Just send us an email info@cheemarealestategroup.com or give us a call PJ 604-725-1258 | Razaik 604-537-8447!