4 Things You Should Know About Our Market

Dated: June 28 2022

Views: 71


Interest rates are rising, so should you be worried about a crash?


“Will housing prices collapse?” I’ve been receiving this question almost daily. Interest rates have increased dramatically recently, and many homeowners are worried. The answer isn’t cut and dry, so here are four key factors that explain what’s happening in our real estate market:


1. Mortgages are getting more expensive. Our buyer pool shrinks as homes become more expensive, and some buyers are no longer qualified to purchase a home at all. With fewer buyers at all price points, we’re unlikely to see the crazy-high appreciation of the last few years continue. 



2. Rents are increasing. Many buyers priced out of purchasing a home are turning to rental options. As a result, the rental market has skyrocketed. 


“Most experts agree that we aren’t heading for a crash.”


3. There is still a national shortage of homes. Supply nationally and locally is still incredibly low. This will keep prices high even as demand falls.


4. No local or national experts predict a market crash. Instead of a crash, our market may face a correction. This means we’ll return to a more balanced market. Homes will likely sell for 90% to 100% of their asking price, which is typical during normal times. The 2008 crash was caused by loose lending practices that just aren’t present in our market. Because of this, a collapse would be very unlikely. 

As our market normalizes, it may feel different. However, there will still be plenty of opportunities for buyers and sellers. If you have any questions about today’s topic or anything else, please call or email me. I’d love to speak with you!


This Blog is courtesy of Will Cook, WILL COOK GROUP| Keller Williams Luxury Homes, Palm Springs, CA | DRE #01879277

©2022 Will Cook Group. All Rights Reserved


Blog author image

Will Cook

Ranked in the top 1% of all agents valley wide and named one of the Palm Springs Life Top Realtors for 2019, 2020, 2021, and 2022; Will is an Associate Broker/Team Leader of the WILL COOK GROUP with K....

Latest Blog Posts

What To Do When Your Appraisal Comes In Lower Than The Contract Price

Don’t let a low home appraisal disrupt your sale. You have options.Despite rising interest rates shrinking your potential pool of buyers, now is still a great time to sell your home. Home prices

Read More

Why Is A Rent Back Agreement A Godsend To Home Sellers Not Ready To Move

If you're buying your next home while selling one you’re currently living in, you’ll definitely be glad to know what a rent-back agreement is.As you might imagine, this double transaction can

Read More

The Earnest Money Deposit How It Helps Buy A Home

What is earnest money? Depositing earnest money is an important part of the home-buying process. It tells the real estate seller you’re in earnest as a buyer, and it helps 

Read More

Read This Before Entering The Market

How our market has shifted over the summer, and where it’s headed.While our market has begun to shift in favor of buyers, it’s not a full-blown buyer’s market. Today I’ll update you on the

Read More