Understand Real Estate Market Shifts

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It’s not secret the real estate market shifts from the last few years have affected the housing industry everywhere. From winter interest rights putting a huge stop to buyers and sellers suddenly not getting the gold for their homes, it took everyone by surprise. 

But, we have to look at the bigger picture. 

The fact is, the previous few years decisions by the powers that be have caused these real estate shifts and put an unfortunate strain on people looking for affordable homes. The incredible low interest rates drove prices sky high which still pushed people out of the market on homes that fit their family and needs. 

This cause and effect of these real estate market shifts affected many people before, during, and after the influx. 

Those that bought their homes right before the crush reaped the rewards immediately in equity. Those that sold their homes right after the crush were able to profit from buyers ready to make the purchase with lower interest rates.

However, with the rewards came the risks. The politics of the time drove wealthier people often from larger cities away from their homes in droves. Unfortunately for the local medium-income home-buyers, these out-of-towners struck gold with our lower costs of living. They were often able to pay cash, sometimes buying more than one property as an investment. 

In my opinion, we can’t blame them. If we were in the same position many of us would do the same thing. 

Fast forward a couple of years and the real estate market has shifted again. Now we are seeing those who paid top-dollar for their home during the last year or two trying to sell at today’s market and it is not going well for them. 

People buy and sell for many reasons. A new job, transfer, family, opportunity, even just because. Unfortunately,  circumstances can change in a short amount of time and all of a sudden they are faced with having to move beffore they can gain equity in a recently purchased home. People can become upside down in a mortgage in no time. 

So, if you are someone who is finding yourself in a situation where you have to move after recently purchasing your home, talk to your mortgage professional, discuss options with your realtor, and see what you can do to at least come out even. It is better than many of the alternatives. 

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