GAMBINO REALTORS HOM E GU I DE VOLUME THREE ISSUE SEVEN | 2022 Publisher: Gambino Realtors
WHITE HOT vs RED HOT
Editor: Kathy Heeren-Ellis Design: Sarah E. Diamond Photo Editing: Derek Stone
When measuring the temperature of steel when heated by noticing its color, white-hot occurs at temperatures above 2,400 degrees. Heating steel to 900 degrees and up produces a red-hot color. Of course, both examples are really hot, but there is certainly a difference both in temperature, and appearance. Likewise, when I’m asked about the current state of the real estate market, I use this simple analogy to explain that while we see a softening, we are still in a red-hot market. Homes are still selling at a brisk pace, and values are still going up, it is just that compared to the “white-hot” market of the last two years, “red-hot” just appears slower. I don’t know about you, but I’ll take a red-hot market every day! The other question I’ve been asked lately is about rising mortgage interest rates and inflation. While we don’t like to see either scenario, it is interesting to note that during every inflationary period going back to the 1970s, mortgage interest rates actually dropped an average of 1.8%! Inflation, recession, and mortgage interest rates are never permanent, but it looks like the housing industry is poised to continue its growth albeit at a more normal pace.
Jonathan R. Krause, President Gambino Realtors
The Gambino Home Guide is a presentation of properties for sale in the Northern Illinois region. Since 1923, Gambino Realtors has navigated buyers and sellers through real estate transactions. www.GoGambino.com 3815 N. Mulford Road Rockford, IL 61114 815.282.2222 5330 Williams Drive Roscoe, IL 61073 815.623.3333
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