There are several reasons why housing market not crashing in 2023 and here has been a lot of concern about this subject to include recession in 2023. There has bee a lot of affordability challenges throughout the nation and it's understood why concern is there. Please understand this is not the exact scenario like the housing crash in 2008. Times were different, we recently come out of a two year pandemic 2020-2022 that tumbled our housing market in a good way with super low interest rates, not so last 2008 recession.
It's harder to get a loan, improved guidelines have show the lending institute to approve cleaner loans. This has led up to the 2008 housing market crash, approving greater risk loans with other products that led to massive defaults, foreclosures and nosedive prices. Not so in 2023. Unemployment is much stronger 2022-2023. Homes are still selling and demand is high, homes sold has pulled back drastically and many buyers are rethinking the process and major game changer. Average bottom line hot sale is price is 424k through 600k in Central Florida area. Click link to learn more about unemployment rate https://fred.stlouisfed.org/series/UNRATE
Recession does not equal housing crisis. Experts predict it will be mild and short with interest rates slightly decreasing as the federal reserve explained in the March 2023 meeting later this year and recovery period over subsequent two years. It also does not mean falling home prices in this season we are currently in as per historical date from 1980. Click links to learn more https://www.thebalancemoney.com/the-history-of-recessions-in-the-united-states-3306011
During traditional recession, Federal Government usually lower interest rates which creates a frenzy for people to spend money to revive the economy. This leads to more affordability to purchase a home. In 2022 June into 2023, not so. Interest rates spiked ten times up to now May 2023 which is a national record along with inflation. Indication from experts the housing market is in a market correction back to the normality five ish percent. Click link to learn more about housing market correction /HOUSING-MARKET-CORRECTING---32819---32836---Dr-Phillips-6-22828.html
Truly you don't have to fear what a recession means for a housing market
Yes there are currently fewer homes on the housing market for sale, 30-60 day inventory 2022-2023. 2009 the reasons prices fell is due to a surplus of distressed homes flooded the housing market with defaulting bad loans issued due to improper fundamentals in place. 2021-2022 bidding wars, 2023 not so, completely opposite as you can see it. Lean on your trusted advisor to keep you on point. This shows you currently we are still in a seller's market despite high mortgage interest rates however taking about up to two weeks and bit longer than the pandemic season 2020-2022 to sell. Click link for my free ebook Navigating The Buying Process https://kevinstrawter.book.live/read-buyer-book
As a trusted advisor, professional realtor and military veteran I am here to serve you and always on the pulse of the housing market for the Dr Phillips and Central Florida area. Always stay in tuned, educated and connected in this volatile housing market to purchase or for the sale of your home. In the absence of trustworthy up to date information whether it's a housing crisis or local housing market, real estate decisions are increasingly driven by fear, uncertainty and doubt. We as trusted advisors drive the real estate community to ensure you are making the right decision. Don't let this shifting housing market delay your dreams, data reveals home values typically appreciate over time and that gives your net worth a nice boost. When you are getting help with a home, look for your realtor with the heart of a teacher. If you are ready to start your journey, contact me today at 850 496-6412 to help begin a new walk to home ownership and all your real estate needs. Click link to learn more about Kevin Strawter /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html?