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Will The Real Estate Market Crash? We Have Some Thoughts! Wisconsin Real Estate

Monday, August 28, 2023   /   by Julie Winter-Paez

Will The Real Estate Market Crash? We Have Some Thoughts! Wisconsin Real Estate

If you’ve been listening to the real estate crash callers over the last two years, hoping the real estate market was going to crash, I’m sorry, but that day ain’t coming any time soon.

Stick with me, I’ll break down the numbers… Our housing market is based on supply and demand. Not by speculation or opinion. Yes, demand has slowed due to rising interest rates. Fact! (Dwight It’s true) But, inventory of new listings has also plummeted. Fact! (Jim Fact) As a matter of fact (Dwight), we’ve had double-digit declines in 52 of the last 55 last weeks. (Use Newly Listed Homes Chart)

Why? Because a majority of homeowners have super low-interest rates. (Lock in Effect) Why would you sell a home with a 3% interest rate and buy a new house at a higher price and a 7% rate? You wouldn’t unless you had to or you get to. And most people can’t afford to, so here we are.

Now, going back to our supply and demand situation.
In order for us to get more inventory, at least one of the two following things has to happen, if not both…

1. People need to lose their jobs. And right now, unemployment is only at 3.6% and the U.S. economy is growing. (GDP)

2. Builders need to build more homes than we have demand for. And since the cash of 08, they got smart and sell their home before they build. Not the other way around, and pray you’ll buy.

Simply put, there isn’t enough inventory in the market to crash or dramatically reduce home prices yet. Stop listening to people who prey on your fear and lack of understanding. (Michael Scott) Do some research and make data-driven decisions that are best for you, not what some dude like me on the internet says.

Real Estate as an asset has proven itself over time, and it doesn’t need a crash caller, Realtors, or an average Joe to validate it. (FED)

The bottom line, there is always an opportunity to win in real estate, but you can’t win if you
don’t play the game.

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