In 10 years we have been through some of the most turbulent times in our real estate market. In 2008 I was interviewed on ABC as the nation struggled with declining values, foreclosures, and short sales.
Now a decade later and bail out after bail out we find ourselves in a different market and a new set of problems. Short supply of homes for sale in the entry level price ranges are pervasive through out the metro area and prices are on the rise passing our high water mark. With multiple offers on virtually every home for sale in the 300 thousand and under price point one wonders where this cycle will end.
Interest rates continue to inch up which is putting a dampening effect on affordability and forcing some buyers down into a lower price point. This only aggravates that entry level bracket and adds competition to the first time home buyer.
We are now seeing real wage increases as a result of the Trump tax cuts which may offset some of the interest rate pressure.
In an upcoming post I will be sharing an experience as a listing agent of an entry level home and how, from the seller’s point of view the market reacts to a home for sale in that price range and how we evaluate the multiple offers that are presented.