• THE PHOEBE FILES •
Your Weekly New England Real Estate Conversation
Phoebe Schreiner, our Real Estate and Lifestyle expert, answers your questions about the Connecticut and New England real estate market, along with other great coastal finds and designs. Take a scroll to see the latest Q+A on The Phoebe Files.
Last week we answered Ellen’s question on what’s driving this insane market. It’s a prefect segue to this week’s question from Marc of Mystic, CT (one of my favorite shoreline towns btw!).
Are you asking yourself the same questions? How long is this going to last? If so, you’re not alone. This question is asked of me Every Single Day. In many cases, multiple times a day.
Truth be told, it’s hard to say, but predictions are – we’re into this market for the next 12 months. So, buckle up and prep for the long game. This market is not going to change anytime soon. Please don’t shoot the messenger.
So what happens when it’s over?
There are three major factors that show the Real Estate Market is not headed for a Titanic sized iceberg.
- Cash is King: Mortgage Insiders are sharing that there’s a big decline in the actual number of mortgage applications. Hello Cash Buyers (yes, even with these low interest rates!). This is KEY as it helps to stabilize the market and prevent a repeat of 2008 when Lehman Brothers collapsed because of overexposure to subprime mortgages causing the market to tank. Literally and Figuratively.
- Spring has Sprung: The peak of the Spring real estate market is underway. Bring on a more inventory. Yes, there WILL be more inventory. (Dear God, it’s Phoebe…please get this memo.)
- Light at the End of the Tunnel: Vaccinations are UP, the weather is better, and states are lifting some of the restrictions all of which is giving people a much needed dose of confidence (pun intended) to start resuming some sense of normalcy in their lives. Back to normal = more likely to leave your home and allow others IN your home = more likely to sell a house you’ve been considering selling for a year now.
Here’s the good news, even with inventory low, and prices exploding, there’s not a predication for the market to crash. You just need to ride the storm and know that if a house is listed for $500K, the Seller really means $600K, no inspections, waive the mortgage contingency and be prepared to play Russian Roulette at the house hunting Wheel of Fortune.
As I say to every client…the right house is other there and you’ll find it. Don’t get frustrated. Just have patience and stay the course. Your perfect house is out there.