Most price decrease are at the higher end and simply a market correction. In earlier posts, we mentioned that there was a "buyer market" in upper end homes. There were more homes for sale than buyers looking for them. That is a direct opposite of what we were seeing in the lesser priced market. As of now, there is still a shortage of homes and buyer demand cannot be met.
Human nature being what it is, folks were testing the market to see if they could get a higher price for their home - have a look at today's report and the example of the $300,000 home that really was not was worth $325,000 to begin with. The sky is not falling.
There is no crazy bubble forming. Things are very different than a decade ago. Home prices are actually BELOW value after adjusting for inflation (have a look into today's report and data provided by Corelogic.
Mortgage standards have been much tighter than a decade ago - foreclosures are far less. AND - homes are more affordable thanks to lower interest rates. No market is "perfect" but we are certainly in a good one right now.
That forecast is not to be taken lightly. Freddie, Fannie and the Mortgage Bankers association are looking for a good year in 2019. I hope you will join in and let the opportunity work for you.
