09/21/2022
Okay, be honest… how fast can you actually drive over the speed limit before you get pulled over? I always assumed people drove maybe 5 mph or so over. Anything beyond that comes with risk. It's kind of like the real estate market, actually. In a normal balanced market, homes typically appreciate around 2-4% a year (give or take).
But in the last couple of years, home values here in Knox County have risen by 10-20%. It wasn't sustainable. Like driving 20 over the speed limit, it's fun while it lasted, but eventually, you will get caught.
Here's the surprising thing: many folks expect home values to decline this year. But that's probably not going to happen, even with interest rates on the rise. There's still WAY too much demand relative to the actual supply of homes. It's Economics 101. So, while things will get a little bit more balanced (at least compared to last year), we're still technically "speeding" a bit.
Home values will continue to slowly appreciate, just not as fast as before.
So, as the old saying goes, it's never a bad time to buy real estate IF you plan to buy and hold. Time in the market matters more than timing the market. So don't wait to buy a home. Buy a home... and wait!
Oh, and I'd like to add a friendly disclaimer to always obey traffic laws. 😉
- Elizabeth
Team Collier, e-Merge Real Estate Champions
