Why There is Nothing to Fear About a Housing Crisis in Northern Nevada
With inflation on the rise, many are concerned about how rising costs and interest rates will affect the housing market. The Federal Reserve has raised interest for the third consecutive time and there continues to be economic uncertainty. Homebuyers today are facing a very different housing market today, but that isn’t necessarily a bad thing.
First-time homeowners looking to enter the market and existing homeowners thinking of selling can both benefit from the following considerations for the Northern Nevada housing market. Despite the threat of a recession, the market remains strong and a housing crisis seem unlikely. The challenges facing the economy today are nothing compare to the crisis witnessed in 2007 – 2009 due to high-risk mortgages and bad lending practices.
Historically, when the economy begins to slow that does not necessarily mean that homes will lose their value. The area has had a huge increase in residential housing inventory, increased buyer demand, less bidding wars, homes going below asking, and buyers having to leverage further than before to negotiate. As more inventory has come on the market, buyers can now take their time with the additional options rather than compromising as before.
Much of what could happen next depends on the Federal Reserve’s next decision. Federal Reserve chair Jerome H. Powell indicated that interest rates will likely increase further to help curb inflation.