The Recession’s Here – Now What?
The financial markets are clearly signaling that a recession is here. What does this mean for local real estate? Typically the local real estate market slows significantly 6-9 months after a recession begins. The local real estate market is already slowing due to the current financial market turmoil. We expect the slowing to continue into the next year. It will clearly be a buyers’ market then and prices will begin falling for most homes. In fact, the high-end price segment and properties with “issues” are already falling in price.
For Sellers: If you want to move short-term, you should do it now or expect to wait for 3-5 years to get today’s prices.
For Buyers: You have a once a decade chance to get a great “blue chip” home without having to compete, and a historically low (less than 7%), fixed interest rate on your mortgage. Select carefully, but act quickly. When the economy pulls out of the recession in 12-18 months we expect much higher mortgage rates.