Is the real estate marketing going to crash?

And the short answer is…NO. But let us give you a bit more context…and 3 clear reasons why we do NOT see a crash coming any time soon.

#1- Low Inventory – Even with rising inflation, new home building can’t catch up to meet the demand of our buyer surplus. Currently, there is an extremely tight supply of homes on the market, the lowest on record since the turn of the century.

#2- Low Rates – Most housing experts project that mortgage rates will only rise somewhat modestly this year. But even if DO rise more than expected, there will still be more buyers than the amount of available homes for sale.

#3- Millennials – They make up the largest share of homebuyers in the US and they are entering the market like never before, which is playing a huge role in our market conditions. Not only are Millennials reaching their peak homebuying age (of 33) they know buying a home is more cost effective than renting.

So if the market is not going to crash…what do we predict? Well…as the vaccine rate of Americans continues to increase and more homeowners feel comfortable listing properties and having strangers walk through their homes, market conditions will likely become more balanced. There will be more supply and prices should adjust somewhat.

That likely means the continued insane rate of appreciation will likely slow. Freddie Mac predicts home prices will rise by 6.6 percent in 2021, slowing to 4.4 percent in 2022.

If you’d like more information on our Livermore Real Estate market or a free selling consult, call us today or visit:

We’re your local Livermore Realtors…let us put our 20 years of real estate knowledge and expertise to work for you….so that you can love where you live, even more.

Nicole Nicolay

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