Housing prices have jumped 32% in the past two years, and mortgage rates are approaching 5%. These stats have caused some real estate watchers to wonder if a housing bubble is on the horizon. Should homeowners, recent buyers, and current property sellers be worried about sudden price drops or a situation similar to 2008’s housing crisis? And how will these market trends affect local real estate markets in New Jersey?
Property owners can alleviate some of these concerns by working with a real estate expert who has their pulse on the local market. In the Rumson, New Jersey area, for example, Dennis Lynch and Marshall Lynch are a father-son team with ten years of experience and more than 1,000 clients successfully served. This locally-focused experience, combined with an analytical approach, gives Dennis Lynch and his son Marshall Lynch the insights to help homeowners decide when to buy, when to sell, and when to sit back on watch their investment grow.
What is causing the real estate market to grow so quickly?
The timing for buy, sell, and hold decisions can vary depending on the local market, but what do nationwide trends and data say about the potential for a housing bubble in the near future?
Demand continues to be high across the country. Much of this new interest in homeownership comes from Millennials and Generation Z, who are now starting to enter the housing market. Also, there are many investors trying to capitalize on the fast-rising prices before the market peaks.
Should owners, buyers, and sellers be worried?
The fast-rising market is causing concerns that there could be a repeat of the 2008 housing crisis, which saw home values drop by 20% or more. However, there are signs that the market is healthy enough to avoid such a catastrophic situation. Unlike 2008, when people were unable to repay mortgages, many of today’s home buyers have solid credit scores and use less than one-third of their income on mortgage payments.
What about the New Jersey housing market?
New Jersey’s housing market has slowed somewhat, with a month-on-month decline in the number of sales at the end of 2021. Because inventory is scarce and prices are high, some would-be buyers seem to be thinking that it is best to just sit out for a while.
Even with fewer sales, prices continue to rise. Some experts anticipate that they will peak sometime in 2022. However, other unpredictable factors, such as inflation, global conflicts, interest rate changes by the Fed, and new home constructions, may affect the property markets in the state.
How can Dennis and Marshall Lynch help you master the New Jersey real estate market?
A repeat of the 2008 housing crisis is unlikely, but trying to make property decisions during such an unpredictable time can be very challenging.
Even in periods of steady and slow growth, purchasing a home is a huge investment, and you always want to be sure you are making the right decision and timing your acquisition or sale correctly. A real estate agent with a methodical, analytical approach can use current market data, paired with your plans and financials, to help you make informed decisions.
In Rumson, New Jersey, Dennis and Marshall Lynch use this strategy to help their clients find the perfect property and time their transactions. The Lynch team analyzes each client’s requirements based on the current market conditions. They can then offer insights to help make realistic plans for purchasing, holding, or selling your property.
This methodical, analysis-based process helps clients make buy and sell decisions, but it also gives them sensible expectations for expected equity growth and return on investment (ROI).
Contact the father-son team of Dennis and Marshall Lynch to take advantage of their experience in the Rumson area and the analytical approach to real estate that can help you feel confident in the current unpredictable property market.