HeritageHappy Independence Day! The Fourth of July is always a day to celebrate and for me it is time to reflect upon how fortunate we are to live in America. Many generations before us have made the ultimate sacrifice to secure our freedoms and to lay the foundations of a nation that embraces hard work and opportunity. I know that the life we live today is only possible because of the ideals that shaped this nation: Liberty and Justice for All. While we have our challenges as a nation, through it all, American ideals have always persevered and this time is no different.
Runaway inflation, rapidly escalating mortgage interest rates, high commodity and labor prices, inventory shortages, supply line delays- All of these things continue to have a dramatic impact on home prices and real estate market conditions. No one can forecast where things go from here with certainty. We are seeing some moderating in sales volume, yet home prices continue to rise (Up 20% year over year Nationally in April and up 11.6% in Kansas City) The drop in sales volume is more related to lack of inventory than lack of buyer demand. I have witnessed a rush to purchase, especially from entry-level buyers, who hope to buy before rates go up even further.
Most experts project a “softening” of the housing market, but not a dramatic decline in prices. If employment stays robust and the Fed accomplishes even a “softish” landing for the economy, the underlying lack of housing supply should backstop any correction in house prices.
All of this aside, housing is something that we all need. Whether you own a home or rent, housing is essential and always will be. The gyrations of the economy and stock market do not change this fact. So, as we experience this new chapter together, take confidence in the fact that your home is so much more than a financial asset.
If you have been considering a move up, downsize, or are just curious what your home might be worth, please give me a call. I am always available to talk and you can rely on me for honest real estate advice. Have a fun and safe Fourth of July!