Whew, friends. What a wild couple of weeks. Of course, our focus is always on “what does this mean to the real estate world?” Let's chat.
After 28 years in real estate, I've learned that perspective is everything. I tend to look at events through a lens of baptized by fire calmness. I'm reminded of a valuable lesson: the importance of responding to market changes rather than reacting.
The last few weeks have been unique in all of our respective businesses. Where this all settles out remains to be seen. For right now this I do know for sure. There is opportunity in every market and it is ALWAYS advantageous to either the buyer or the seller in the real estate market. Even with all of the volatility of the last few weeks the purchase apps for housing are up over last year. That is a positive indicator for housing. We have a chronic inventory shortage that will likely be exacerbated by current conditions. Translated we remain entrenched in a solid seller’s market. The market has slowed down but that does not mean it is slow. It means we need more inventory and that some are taking a pause.
What is increasingly apparent is the new normal of much higher new construction costs. The recent tariffs (real and proposed) have increased prices (again), and historically, these prices have rarely decreased. This makes existing homes particularly attractive right now. However, it's essential to note that replacement costs do not necessarily correlate directly with existing home values. THIS is important to know. Recently I have been in market analysis meetings with clients who have hugely inflated ideas of their home value due to what it costs to build. Reality is real. This is where the insight of an excellent agent is so vital when you are making strategic housing decisions. I see a large gap of perceived values forming vs the reality of the market. This is where the expertise of a real estate professional becomes so valuable.
Right now, ill priced properties are lingering on the market. Well priced homes are often receiving multiple offers across all price categories. The line between well price and overpriced changes almost daily right now. This is a time for strategic thinking and listening to expertise. We are focused on helping our clients make informed decisions based on real market conditions, not fear or unrealistic expectations.
One of the biggest factors we're watching is what happens with Federal Reserve Chair Jerome Powell. Any changes in leadership or policy direction could significantly impact interest rates, which in turn affect market demand. If rates decrease and market conditions stabilize, we could see renewed momentum in the real estate market. This is a very big deal on many levels but specifically for interest rates.
The market is always evolving, and that's exactly what makes real estate so fascinating. As we navigate these changes together, remember that having a knowledgeable guide who's seen all kinds of market conditions can make all the difference. We calmly and expertly find a way to make it happen for you!
Want to know more about what's happening in your specific neighborhood? Let's talk! I'm always here to help you navigate the current market dynamics and make informed decisions. We enjoy partnering with our clients on their shelter needs and dreams.
Side note…Enjoy the Draft if you decide to check it out! Be sure to download your NFL Draft One Pass if you go. This will be the biggest event Green Bay has ever or will ever experience. It is a HUGE deal. I hope it is a smash of a success for our town!
Extra side note…Things are changing so quickly that by the time you see this (lag of 24 hours) major events may have occurred (Jerome Powell) that make the newsletter incorrect.
