There is a normal cycle of real estate to have buyer's markets and seller's markets. For the last 2-3 years, when someone would ask me "what market we are in?"(buyer or seller), the answer was
How High Can The Market Go In Frederick Maryland
Dated: September 15 2020
The big question in every buyer's mind this month is, "How high will it go?"
In addressing the answers to this important question I want to lay out 5 principles of real estate market swings.
1. Yes everyone is in the same boat! If you are a buyer looking for a home in this real estate market and feeling nervous, afraid and pressured you are not alone! As an owner and Realtor and having gone through these crazy markets before, I can assure you that everyone around you is also spinning and hoping this merry-go-round would stop!
2. What goes up does come down, but it always doesn't land flat. Real estate markets in the past that had sudden and intense pricing increases, have always resulted in the opposite reaction. Eventually, and typically after a few years, the pricing begins to fall. What is unknown is where the values land. Will they deflate all the way back to where they started or somewhere in between?
3. If you are a seller, it's the best possible time to cash out and take advantage of the value increase. Particularly if you bought your home between 2006 and 2008, you probably overpaid for your home in the last real estate bubble just prior to the Great Recession which began in 2008. Now that you have been in your home for at least 10 years and have paid down some principle on your loan, you could see a sale potentially as high or higher than your original purchase price. If you have been considering retirement and want to downsize, it's also a great time to take advantage of the swings upward in value.
4. Buyers ask themselves, should I buy now or wait. Even though it's challenging in our current environment, it's still a great time to buy. Interest rates at a record low allow affordability to be way up, especially for first time homebuyers.
5. So, how high will the prices go? The true answer is we do not know. Economists predict this seller's market will last through 2021 due to historically low inventory and very high demand. Typically these cycles take 2 to 3 years to play out. So the best answer is that we have to wait and see.
Terry La Scola is a lifelong resident of Frederick County Maryland and has been involved in the business community of Frederick since 1979. As an entrepreneur, Terry has an extensive knowledge of sal....