Here’s what you need to know about a crash in our housing market.

Over the past couple of years, some people have been waiting to buy a home until the housing market crashes or home prices drop dramatically. However, there are two factors that will likely prevent the housing market from crashing any time soon: supply and demand.

The rise in mortgage rates last year affected many people's ability to buy a home, which put a damper on buyer demand. As a result, the rapid home price appreciation slowed to a more normal rate. However, in the Richmond area, home prices have remained steady and even continued to increase in the most desirable neighborhoods due to a lack of inventory.

“Buyers should make a move sooner rather than later.”

The inventory of homes for sale has been at or near a record low level for several years, which drives prices up. Buyers have no choice but to compete with each other to win homes. Without a drastic increase in the number of homes for sale, there's no indication that the housing market will crash or prices will drop dramatically.

Waiting for mortgage rates to drop may not be the best strategy, as lower rates tend to increase demand and drive prices higher. When you decide to buy or sell a home, you need to consider all factors relevant to you.

If you're considering a move and have questions about the current market, call or email us today. Our team will listen to your needs and help create an exit strategy that works best for your situation. Remember, it's not the market… it's the marketing that makes the difference.