The Current Deceleration of the Real Estate Market
Those following the market closely may have noticed a deceleration in the gains that were being posted earlier this year. While this may be discouraging to some investors, there is no reason to feel pessimistic about it. The real estate market posted huge gains earlier this year due to the recovering economy and very low mortgage interest rates. Now that interest rates are getting higher and housing prices are approaching their peak, buyers are becoming a little more rare.
The slowing of the real estate market may actually be critical to avoid another housing bubble. The slowing of the market means that people are thinking critically about their real estate decisions and that they are avoiding overextending themselves on property that they can’t afford. Overall, a decelerated real estate market is the solution to rapid inflation, which could potentially cause another housing crash and devastate the country economically. It’s important for those interested in investing in the market to note that the market is still improving, just not as fast as it was.
For more information about the current real estate market and why deceleration could be a good thing contact Karen Spechler, your Santa Barbara real estate expert.
Karen Spechler- Santa Barbara real estate