Why Isn’t The Real Estate Market Crashing?


We all saw the headlines over the past year stating home prices would end up crashing…but why has it not happened yet?


You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there is another factor at play – low inventory.


If more homes don’t come to the market, a lack of supply will keep prices from crashing.

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.


Some markets across the states will see a dip in pricing, but here on the Treasure Coast, supply is still low so seeing a 30% dip in price is highly unlikely.


Why is this a positive for home sellers this spring?


Lower inventory means lower competition means more exposure. With rising mortgage rates at a sideline, buyers are entering the market again and ready to buy.


Interested in what your home is worth in today’s market? The Stracuzzi Team is happy to provide you with a complimentary market valuation on your home!