We’re asked almost daily where this market is headed. There are some really incredible stats coming from the National Association of Realtors (NAR). NAR has a long history of being a very reliable source.
Our goal is to help our buyers and sellers make the best decisions possible. We’ve made a deep dive into the projections, and really the best data available is going to put your mind at ease if you’re making housing decisions over the next 12 months.
Our theory has been that the housing scenario now is driven by population growth, and investment expansion from other countries, among many other factors that were not at play in 2008.
Yes, it’s true, we’ve had two quarters of negative GDP (Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period) over the past year. Both of those quarters were incredibly mild. Two quarters were both under 2%. We made a small recovery the following quarter. Now, the thinking heads that study the market claim this third quarter will close at a growth of nearly 3%. In other words we’re coming out of this mild recession very quickly.
For the year of 2022 they are estimating we will be at a positive 2.2%. How does this affect your housing decisions?
Of course, these are only predictions, but the National Association of Realtors has exceptional track record tracking market stability. NAR is predicting home prices have started to adjust to a more normal and reliable price point. What does that mean? We may continue to adjust another overall correction of 5% over the next 6-8 months.
Then based on NAR, and other top market evaluations predictions are home prices will level out and start their steady, more normal year over year equity growth.
More next issue – let us know if you have questions – we are glad to help.