l a i t n e d i s e R s d n e r T 2017-2018
By Mary Margaretich Real Estate Agent, ReMax Performance
A couple of questions we primarily get asked regarding the current housing trends are “Are we at the peak?” and “Is this another housing bubble?” and depending on who you talk to, we have heard everything from “The market will collapse in 2 years” or “We have another 5 years of an up market.” Now we know that nobody has a crystal ball, but here is some insight into our team’s professional opinion on this hot topic.
collapse, and we believe that what makes this market different than the 2007 peak is the type of loans that are being funded. Buyers are being thoroughly screened and educated prior to financing any loans, and most of the current loans have sizable down payments. This helps stabilize the market because buyers are more emotionally and financially invested, which leads us to feel confident in saying that we don’t anticipate a collapse any time soon.
First, let’s talk about the numbers and what they show us about the current market. The 2017 Real Estate market in Nevada County has been in an upward trend averaging approximately a 2% increase each month, which gives a total increase of approximately 14% from January to August of this year. These percentages are actually pretty common throughout the cycles of the Real Estate Market. The steady price increases are mostly due to historically low interest rates and a low supply of inventory.
Interest rates will go up, but at a slow rate which should keep them attractive through 2018. We also believe that home prices will either continue to go up slightly or level off, but the market will remain strong. This could last for up to 5 years, but we can confidently say that the Real Estate market in 2018 will be stable with potential for a slight increase. 2018 will be a good time for buyers to take advantage of the historically low interest rates, as well as a potentially good time for homeowners to sell before we pass this steady up-market.
Many people are curious about another potential market
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DESTINATION Nevada County