The Real Estate Doomsday –Fact or Fiction?
You may believe that rising interest rates are causing the real estate market to crash, which is understandable. But will it happen? Exactly how does the inventory appear? We’ll address all of this in the post we’re publishing today Additionally, we will compare data from four years ago with that from last year
Wait, why 4 years ago? You might be thinking. However, rest assured that it will show whether or not real estate is nearing its end. We’ll also talk about what this means for the market’s future and the three most significant blunders you should never make before purchasing a home this quarter
Is It Happening?
In simple words, no! The market is not headed towards a crash, but it is also not as simple as that. Even though interest rates are rising, which we are sure you are most concerned about, they are still within the expected range. The reason is that the 50-year average interest rate is 7.2%. So, the increase in the interest rate shouldn’t
worry you too much. More on this will be explained below Why there is no need for concern:
■ The 50-year average interest rate is 7.2%.
■ Inventories are not as expensive, so there is no risk of a market crash.
■ Rates will range from mid to high 4% in 2023’s first and fourth quarters.
Compared To Last Year
Now is the time to examine the real estate statistics for WA Real Estate and see how they differ from those from the previous year Sales are down, inventory is up, and prices are also down.
■ Home sales increased by 105% on average.
■ The number of listings sold was down by 1.8%.
■ The number of homes under contract was down by 17.5%.
■ Sold price vs. the original price was down by 16%.
Compared To 4 Years Ago
■ The average number of homes for sale is down by 22.4%.
■ The number of listings sold is down by 1%.
■ The number of homes under contract was down by 3%.
■ Sold price vs. the original price is up by 01%.
The housing market was still strong despite a slight decline from August 2019. Despite a decline in the number of homes for sale in WA, prices increased slightly. The beginning of a recovery in home sales is encouraging. We’ll monitor the housing market in the upcoming months to see if these trends persist.
3 Mistakes Buyers Make When Looking At Buying a Home
Now that we know why the real estate apocalypse is not taking place and that it is not happening. Let’s discuss the three most common mistakes people make when looking to purchase a home during this quarter of the year These mistakes will not only create some issues for you but can also make you not eligible to buy a home for at least a year
■ Buying A New Car
The most common mistake consumers make is purchasing a car on credit. Contrary to what you might think, you are not getting a good deal. At least not in the long run. It will be complicated to obtain financing before settling the car’s debt. Therefore, we advise that you postpone purchasing that car for the time being if you want to buy a house and obtain financing.
Or purchase the vehicle because it is a vehicle you have longed to own. In any case, you must be sure of your priorities. However, a car cannot be compared to a home, if you ask us.
■ Making Large Bank Deposits
The second common mistake we see people make when looking to buy a home is making large bank deposits too quickly This is highly suspicious in the eyes of both the bank and the feds. They will delay your loan application until they have solid proof that the money in your accounts is legitimate.
They want to avoid things like money laundering and funding for terrorist acts. But don’t get too worked up about it; it’s a standard and necessary procedure, and as long as you can provide proof that the money you have is yours and comes from a legitimate source, you’ll be fine.
Applying For New Credit
The final blunder is when people apply for new credit lines. This is very common; many people get a credit card they can use for a year before returning the money This sounds great, but it isn’t true in real estate. So long as you haven’t paid off the credit card debt with the bank. Because you are still technically in debt, the bank will evaluate you based on it, and your credit score will suffer as a result.
Conclusion
Finally, while rising interest rates may appear to be signalling the end of the real estate market, it is not! The market is nearly identical to what it was four years ago, and you should not be concerned because interest rates are expected to fall in the coming year. So, if you want to buy/sell a house, keep in mind that the market is changing right now, but if you avoid making mistakes and price your home according to its quality, you will be able to make money or save money if you are a buyer
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