What’s Going on With Our Housing Market?

By Nathan King

Nathan King, a native of Fresno, has spent his entire life immersed in the vibrant Central Valley community. Nathan loves spending time with his family and helping his clients achieve their real estate goals.

Is the real estate market still competitive? The short answer is absolutely! In today’s market, home sellers continue to hold the upper hand, and here’s why.

Housing demand still outstrips available inventory. Think about it: If there are 200 eager buyers with only 100 houses for sale, what do you expect will happen? Naturally, buyers will find themselves competing with each other, inevitably driving home prices up. This phenomenon, known as a bidding war, is why we anticipate local residential property values to rise by about 3% this year.

For the real estate market to crash, inventory would need to skyrocket. So let’s ponder for a moment: What kind of economic event would cause inventory to quadruple? Consider several scenarios:

• Banks stop approving mortgage financing.
• Political upheaval leads to buyer uncertainty.
• Economic instability, such as a collapse of the U.S. dollar or the outbreak of World War III.
• Prolonged disruptions to essential services like the internet or cell networks.
• A sudden surge in home construction by builders.

While these scenarios are extreme and unlikely, they illustrate the necessity of a significant and improbable event to flood the market with inventory. Only then, when inventory reaches an all-time high, will home values plummet.

What’s the best course of action? First, avoid attempting to time the market; it’s like gambling and not advisable for significant life decisions. Instead, rely on the expertise of an experienced local real estate agent. Whether buying or selling, having a professional by your side can greatly enhance your chances of success. If you’re considering a move this year, don’t hesitate to call or email. Make it a great day!