Is Our Market About to Crash?
Here’s why you don’t need to worry about a market crash anytime soon.
“Is the market going to crash?” We are asked this question at least once a week, and we’re sure it’s no different for every other agent in Atlanta. Today we want to answer that question and give you an overview of where our market is right now.
So is the market going to crash? To be blunt, there’s almost zero chance of a market crash anytime soon. From a global financial perspective, we would need to see an astronomical shift overnight for a market crash to happen, and there are a few key reasons why.
Our current market is nothing like it was during the last crash. Back in 2007, the market crashed for two big reasons: First, people were getting mortgages when they shouldn’t have. Banks were actually paying people in some cases to buy a home. Second, there was a flood of inventory and not enough buyers.
" Our current market is nothing like it was during the crash in 2007 and 2008. "
Compared to our market, it’s practically the opposite. We are facing a major inventory shortage at the moment. That doesn’t mean things aren’t shifting. Over the last two months, Metro Atlanta’s average sales price went down 2%. However, this is in the context of an 18% increase since January. This leaves us at a 16% net increase in sales price since the beginning of the year. The average days on market is creeping up as well, but this is also in the context of a crazy seller’s market.
Our main takeaway is this: Don’t sit on the sidelines and miss out on your dream home because you’re afraid of a crash that isn’t coming. If you are looking to buy or sell a home, please reach out to us via phone or email. We are always looking to help!