Why Aren't Home Prices Dropping? // Advice For Home Buyers in Housing Market 2020: Real Estate Q&A

In this real estate Q&A, we briefly go over why aren’t home prices dropping and quick advice for home buyers in this housing market 2020.

In this market, there was already a shortage of inventory before the pandemic. With many people losing their jobs, it would balance the market but because homeowners have concerns of COVID-19, many of them who were planning on selling want to wait until it’s over.

So the demand decreased as well the supply, still causing a shortage of inventory. Sacramento, California is the perfect example of this but with another factor: Bay Area home buyers are starting to move up here causing even more of a shortage.

Interest rates are really low as well making the real interest rate extremely low in which home buyers would like to take advantage of.

Some advice for home buyers in the market:

Try not to go above what you’re comfortable with in monthly payments even if it’s the exact home that you want and in the area that you want. Chances are several others will want the same home as well which may cause a bidding war and can be tempting to go above what you’re comfortable with.

Decide if it’s better to go with a less desirable home in the area that you want. This can help with not getting into a bidding war and you can be comfortable with the monthly payments

Remember that real estate is a long term investment so do not get discouraged if later on the market balances out and your home isn’t valued at what you bought it for. As long as you’re comfortable and can stay comfortable with the payments, you can ride it out and will have equity.

I figured I would quickly make this video because the top four questions I keep getting asked during work is:
Are house prices dropping?
Are house prices falling?
Are house prices going up?
Are house prices going down?

Many economists in real estate companies use statistical models to give predictions but the data changes daily to monthly so the predictions change as well. I’ve seen predictions from -3% decrease in home prices to 3% increase in home prices. It honestly could be either one but if you stick to what you’re comfortable and can afford, then you should be fine.

Stay safe please.

Видео Why Aren't Home Prices Dropping? // Advice For Home Buyers in Housing Market 2020: Real Estate Q&A канала Chris Haith