Judith Sutton ABR CRS IDS PMN ASP IAHSP SRES GREEN
Judy@JudithSutton.com 908 803-0472
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Three Things That Are Not Going To Happen
in Today's Housing Market
...some things you would love to know!
There’s a lot of uncertainty right now and that’s leading to some dramatic headlines. And if you’re thinking about buying a home, that can make you feel a little less sure about your decision.
A recent study by CNBC asked homebuyers what they’re most worried about, and three themes kept coming up again and again:
Mortgage rates
The number of homes for sale
Home prices
But a lot of what you may be hearing is based more on misconceptions. Not facts. So, let’s separate fact from fiction:
Misconception #1: “I’ll Just Wait, Because Mortgage Rates Are Going To Fall Dramatically”
One idea being circulated on social media is that mortgage rates are going to drop dramatically soon. So, it’s better to wait to buy.
Is this really what’s expected?
While mortgage rates have come down a bit in the last few weeks, (and sometimes go up within the following weeks), forecasts in general do not show a major drop ahead. The most likely scenario is that rates stay somewhere in the low to mid 6% range this year.
And that’s not a big change from where rates are now (Spring 2026).
Of course, this depends on where inflation and the economy go. But, based on what we know today, waiting for a big drop in rates may not work out the way you might hope.
As U.S. News reports:
“Mortgage rates aren’t expected to change much over the next several quarters . . .”
Not to mention, that even with rates where they are today, it’s already more affordable than a year ago. So, even if they don’t change much, it’s still better than it was. This is a simple fact.
Misconception #2: “There Are Too Many Homes for Sale Right Now”
You’ve probably heard inventory is up. And nationally, it is. The number of homes for sale is 8% higher Nationally than this time last year. But that’s not necessarily a bad thing. In fact, now you may have more to choose from. However, all real estate is Local. In our particular Somerset Hills area, inventory still remains at historically unprecedented lows.
Headlines can make something good, sound bad. They’re focusing on how this is the most inventory we’ve had since 2019 or how many homes builders are building. And that can make it sound like the number of homes for sale is rising too far, too fast. And of course we know that living in the Somerset Hills area, (and even moving to some of the northern counties) land is very limited for new building projects to have an impact on new construction numbers.
But that’s not what the bigger picture shows.
Data from Realtor.com proves that, even though inventory is up compared to last year, it’s still nearly 14% lower than it was during the last normal housing market (2017-2019):
While it can vary a lot based on where you live, only nine states have more inventory than pre-pandemic today. That’s a key reason why there still aren’t enough homes for sale to trigger something like the crash back in 2008.
Misconception #3: “Home Prices Are About To Crash”
You’ve probably seen this one, too. The confusion is coming from the fact that some metros are experiencing slight price declines. And influencers are running with that and saying prices are crashing. But that’s not the reality.
Most areas are seeing prices rise, not fall. And that’s because:
Many homeowners aren’t selling because they don’t want to give up the low mortgage rate they locked in a few years ago. And that’s keeping a lid on how much inventory can grow.
Since inventory is still below pre-pandemic norms, there aren’t enough homes for sale to cause a price crash.
And even in markets with more inventory, some sellers are choosing to pull their homes off the market instead of cutting prices.
And those are 3 big reasons prices aren’t headed for a crash.
And even in the markets experiencing some declines, the drops aren’t enough to cancel out the big gains most homeowners have seen in the last 5 years. And that’s simply a fact.
That’s not a crash. That’s just prices moderating after a few record-breaking years.
And again, If you want a true, data analysis look at what’s really happening in today’s market, call me. I can give you information about what the market says specifically to what is happening in your area.
So much to learn about! So much to choose! So much to consider!
Need help? Considering a change, or are you ready to sell? Call me. I can help suggest!
“…the right relationship means everything…”
By incorporating my personal attention and guidance into the marketing strategy I aim to provide you with
an Exceptional Selling Experience and detailed negotiations
while ensuring that your property receives the exposure needed and terms of the contract met
to attract buyers from anywhere
LIVE. LIFE. LOVE. LOCAL.
Your Local Real Estate Connection
Get a positive, helpful partner for buying or selling your home:
Trusted resource for answers about the process
Innovative marketing strategies
Expertise about neighborhood features
Ability to target home searches
Strong negotiation skills
Support through the closing and beyond
Why would you settle for anything less?
Adding value for my clients and loving where we live!
Judy@JudithSutton.com
COLDWELL BANKER...GUIDING PEOPLE HOME SINCE 1906
908 803-0472
"...the right relationship means everything..."
SERVING THE SOMERSET HILLS AREA ONE CLIENT AT A TIME
Service & Experience
since 1983