Housing crash or boom you may be asking? We’ll, I’m here to give you the scoop on many key points to consider when buying or selling a house in Houston, TX for the year of 2022 with Flippin Reality Homes.

For what ever the reason that led you here, you must be wondering if and when the housing market will crash or go ka-boom. That’s right! I said it! It’s just a matter of time because we all know, “What goes up, must come down “AND”, what comes down, must go up. Just the same as the grass ain’t always greater on the other side, “BUT”, sometimes it is greener!

Don’t care about the crash and want to sell my house fast? Is it in Houston or surrounding areas? Fill out the form now or visit us on the web at Flippin Reality Homes

At this point, you may be confused about what I’m trying to say. At some point I’m even confusing myself and can sound a little contradicting but one things for sure, you will know soon on what to do with that house. Key points to consider:

• Inflation – Will the dollar continue to lose value and will the cost of goods and services continue to rise? Research, inflation, deflation, and stagflation
• Housing Prices – Will we see the prices of homes rise or fall? It depends on where your at! Are you in a major city, rural area, ETC?
• Inventory – Active listings vs. Sold properties? DOM or days on market has a lot to do with what the future holds.
• Mortgage Rates – Are they lower or higher than when you bought the home? Don’t know? Click here

Inflation

Many already see the dollar not buying much these days in the grocery store but besides that, ever wondered what your willing to pay for a particular product?

We shouldn’t only think if we have enough to buy a specific item but WHY we need it in the first place.

Flippin Reality Homes

The more demand for products or services has a lot to do with the rising cost. We’ve become spoiled and so materialistic, we forgot were our own worst enemy. We want and feel the need for faster, bigger, and better. So why not pay more, RIGHT?

While inflation can be seen to drive economic growth or to be certain there’s not to much deflation happening, it’s all in my opinion to stimulate how a person reacts in either a downward or an upward spiral.

When prices are low, we tend to spend cash like it’s water, like we have a money tree growing in the front yard, and we have nothing to lose, right? Have you noticed if your family and friends or associates buying a ton of stuff they don’t need? Have you noticed prices of just the basic necessities getting any cheaper. Do you see an influx of people discussing the topic of inflation in the news or social media? YES! Inflation is high and will continue to rise only to drop a little before it goes even higher. It’s what’s been happening for the last 100 years.

A house or a property you can buy today for 300K could be 500K in 3 years or less with the same rate it is today, AND, with the same salary your getting paid now.

The point about realizing whether or not to sell your home in terms of seeing the rising inflation is in generally speaking, when prices are high, you sell and when prices are low, you buy or hold.

Housing prices

You know, I know, we all know you can’t stop this. Like I said before, the demand may become lower at some point but people in general want bigger and better for a decent price. Think about the city that’s famous for, “What happens in _______, stays in _______”. Not anymore, LOL! We all know what happens. You gamble, you get entertained in more ways than one and some that shouldn’t be discussed here in this blog but this is a place to come with family, friends, groups, BYS, and or to experience the one and only, “SIN City”. It’s not a secret anymore, similarly to housing prices.

Think about why housing prices are rising in Texas, Florida, ETC? Are people moving from California and New York to come to the Lonestar State or the Sunshine State? Of course they are and why wouldn’t they? Your getting 2 to 5 times the square footage of space for 5 times cheaper.

It’s not a secret, it’s not that they didn’t know this already but now it’s gotten better and worse for them with rising inflation to actually stretching your dollar, oh, and not to mention, COVID where people almost have a permanent office from home, etc.

The cost of living, alone, without a state tax (for now) could be a perfect reason to move here. Are you seeing it yet? Again, the demand for housing has inflated housing prices, materials, and supplies, etc., so if we cannot build new homes fast enough, who’s raising the home prices again? We are!! We did it! Should I sell my house now or wait? Not sure? Send us a message HERE

Rising housing prices are inevitable and only going to continue even though we may see a slight drop as supply and rates go up.

Inventory

Just pull up Zillow, Redfin, ETC. Is there more homes sold than you can find that are active?

Houses are selling like hotcakes with the syrup already in the pancake. I know, because we flip houses and selling them before we put the sign out and over asking so they don’t lose them.

Now, most of my flips are completely renovated to the max with new everything because I can’t sleep knowing if that electric panel was done correctly and my wife seems to have an eye for design and keeping up with the trends so yes they are pretty nice to see and live in. We give it the wow affect as much as possible but besides that, we can’t find and flip enough houses.

Back in the day, there were hot months to be selling. Now it doesn’t matter anymore if it’s in the winter months or summer when all the kids are out of school. You can sell it so long as your not trying to get top of the market for house that still needs 50K in renovations. Be realistic about your price or you’ll be sure to crash and boom, LOL.

In terms of inventory, when inventory is low, you usually can sell it for more and when there’s to much inventory, you’ll have a lot of competition and be forced to sell lower.

Mortgage Rates

Maybe we should be talking if the FEDS will force us into a housing crash or boom?

With rates low, it is a good time to buy. It’s a great time to take advantage of saving 10’s of thousands of dollars on your existing mortgage too. With extremely great credit, you could be in the low 2’s and with Okay credit (above a 640 to 680) you can be in the mid to upper 3’s.

Most people walk into a car dealership knowing how much they can afford on a monthly basis. They hardly ever go in to buy it in cash or ever care about the bottom line. It’s the same as a home. It’s getting to the point to where $300,000 sounds like a lot but wait! What’s the monthly payment? This is beginning to be the question or it will be very soon. With everything mentioned above, this will be the new standard operating procedure when qualifying someone on a house. I mean it is already with the “debt to income ratio” but will become even more so now with the prices of homes going up and up.

My point is the total cost of the home is irrelevant at some point and you will only be thinking about that monthly payment.

Back on to the RATE. The FEDS have already mentioned 2 to 4 rate increases this year for 2022. Sure it can be changed, sure it could be .1, .2, .3%, WE DON”T KNOW BECAUSE WE DO NOT CONTROL IT.

General rule of thumb is the higher the rate, the easier it tends to be to get approved and a improving economy. The lower the rate, comes with a few more restrictions and doesn’t mean it’s saving you the most amount of money or your getting the best deal.

Conclusion and if were going into a housing crash or boom? Will the bubble pop?

THE ANSWER LIES IN THE HOLDER AND WHAT YOUR GOALS AND EXPECTATIONS ARE.

What can you see happening and what do you want to do.

Yes, you may make the wrong decision, but only you can answer this.

Put all your cards on the table and play your hand because not one person can promise you tomorrow or what’s going to happen. It’s up to you and GOD to figure it out. You know, like how it used to be before everyone became experts and know it all’s.

If one person or many is telling you the market will crash, ask them why they didn’t tell you Covid was coming, or ask them to give you the numbers that’ll win this week in the Powerball or Mega Millions too.

Do what’s best for you and do all of you research on the negative and the positives, the advantages and disadvantages of selling your home now or waiting to sell. Don’t let anyone dictate how you control your finances and obviously look at your financial goals.

We know it’s coming but no one can say when. It could be this year or 5 yrs, but no one knows. Either way, I know this is not the answer you wanted but I figure I would tell you the truth because it’s hard for anyone else to.