Economies and real estate markets are cyclical, and sometimes can be either “too hot” or “too cold.” We’re at a moment now where both our economy and local real estate markets have created a “just right” environment to buy a house. Here’s why:
• There is positive job growth
• There is also perceptible income growth
• Consumer confidence is at an all-time high
• Mortgage interest rates remain at historic lows
• Housing prices are stable and not yet rising
• Housing affordability is exceptionally favorable now in our part of the country
As the number of sales continues to be strong and inventory continues to decrease, at some point prices will begin to rise at a more accelerated pace. And, as the Federal Reserve continues its strategy of raising interest rates to counteract the inflation that occurs in a growing economy, housing will become less affordable as the cost to borrow money increases. Classic tales usually have an ending. With real estate, there is no final chapter, only cycles, growth, resets, timing, and opportunities. This Goldilocks moment will not last forever — in fact, it may be fleeting.