Is the Real Estate Market On the Move?

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I just returned recently from a real estate conference for the top agents in the US and Canada. One of the speakers stated that the real estate market is starting to level off and transition into a flat market in many of the major metropolitan markets here in the US (please note he predicted the last crash about a year in advance). Attached is a recent report for the Greater Phoenix metro area.    

        

As you can see from the highlights on the report, monthly sales have slowed down, the month’s supply of inventory is starting to increase and the rate of appreciation is slowing down (see attached report and chart). Please keep in mind, I am not suggesting this is a buyer’s market or that you need to dump your home, what I am suggesting is that we might be transitioning into a different type of market. Because the market is starting to show early signs of transitioning, naturally you want to know what you can do to stay ahead of the market and protect your equity. Pricing the home right and selling the now is crucial to your bottom line. Please call me so we can discuss further.

I've been getting a lot of questions lately from people who are wondering if the market is in for a world of trouble in 2016. Here's what we do know: The market is cyclical. Historically, the market will go up for 5-7 years, correct itself for a few, then go back up. Obviously, the last downturn lasted much longer than expected, because we didn't really start to see home appreciation pop back up until 2011. 

There are a lot of variables that will be impacted when the market slows down. If interest rates go up by even 1%, purchasing power declines 10%. That will push some people out of the market, or cause them to look in lower price ranges. Obviously, Greece is an issue we are watching closely, as well as the Chinese stock market. A lot depends on the world economy and we simply don't know what the future has in store.

I will say this: we have been going up for about 5 years now, it would not be unlikely for the market to cool a bit in 2016. I hear experts saying no way, but here's what we know. Right now, interest rates are extremely low at 4.15% and it's a great time to lock them in before they rise any higher.
 
If you're thinking about buying or selling, give me a call or send me an email. I look forward to speaking to you!