Agent: What's the outlook for the residential real estate market?

Our Viewpoint of the Current Market

By now, you have assuredly been told that a recession is at our doorstep. Inflation is out of control. Interest rates are rising. All of the housing stocks are in the toilet. Residential real estate must be in a depression.

As Lee Corso of ESPN's College Game Day's would say: "Not so fast, my friend".

Our law office, over the past two weeks, has never seen such volume and activity. Listings are still quickly getting eaten up in a day or two and sellers are still in complete control.

What's going on? Why haven't interest rates, the stock market drop and inflation impacted our universe yet? We truly don't know. That's the honest answer. But, there is no question that the recession has not impacted residential real estate just yet.

Our view is that our particular demand/supply curve is so out of whack (with demand far outpacing the supply of homes) that these headwinds have not had an opportunity to impact our world.

The other viewpoint is that buyers are racing out to beat the rising interest rates. That's certainly a viable explanation. But, the true question is: when will interest rates be high enough to offset the supply/demand imbalance. No one knows is still the answer.

An astute mortgage broker told me that "The Fed always gets what it wants". We know what the Fed wants; to quell rising inflation. As we are all aware, housing is a core inflation metric. If 5.5% interest rates has not stifled demand, will 6%? Will 7%? That's a question for the policy makers, but, make no mistake about it, 5.5% interest rates have not offset the demand of buyers feverishly acquiring anything that hits the market.

But, if the adage is true, and the Fed always gets what it wants, it's only a matter of time. Make hay when you can. Right now, as we enter peak residential buy/sell season, there should be no impediment to getting deals done. Hustle now is our advice, as we do not know what the Fall market will portend this year.

As always, please consider us eternally grateful for all of your past referrals. We will never overlook the confidence you entrust us with when you refer one of your clients to our firm. We will always to do our very best to make you look sensational for that referral.

Now, let's get back to work, because, luckily for us all, there is still work to do!