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Understanding the Current State of the Housing Market

The talk of an impending housing crash is always something that grabs our attention. Every time there’s a dip in property prices or market instability, we tend to panic – but the truth is, we’re not currently in a housing crash. In fact, housing market conditions have been consistently strong over the past few years, and there’s good reason for that.

Firstly, the mortgage market is in good shape. Interest rates are still low and lenders are still offering competitive deals to potential buyers, which means more people are able to take out mortgages and purchase their first home. This has led to increased demand and kept the housing market buoyed over the years, despite market fluctuations and downturns.

Secondly, the economy is improving. After several years of uncertainty following the financial crisis, the economy is beginning to pick up. This is leading to increased consumer confidence and job creation, both of which are essential in keeping the housing market going. Additionally, the recent US tax reform has provided further impetus to the economy by providing tax relief and incentives.

 

All things considered, then, there’s good reason why the housing market has remained so strong over the past few years – and unless something drastic changes (which doesn’t appear likely anytime soon), we should expect conditions in real estate markets across America continue on course as they have been going thus far. Whether you’re looking into purchasing your first home or you’ve already made several major investments in property over your lifetime, understanding what contributes to stability in your local market can help you make better decisions about where you want your money invested now and into the future.