The downside to record-low interest rates is that they tend to go back up and when rates go up that is very bad news. The downside to a record-breaking year in home sales like 2021 is that if the next year isn’t even better the real estate news is all doom and gloom.
Much of the news about home sales and the housing market is grim yet homes sell for more today than they did in the fall of 2020, or in the fall of 2019. There have been times in my career when on average it took months or even a year to sell a house. Right now a house in St Paul will sell in less than 30 days even in October.
If you need to move don’t worry about selling your house. If you are buying a house you may be able to negotiate and get the pre-pandemic price. You may also be able to get the seller to make some repairs or pay some closing costs or points.
If you bought a house during the peak in 2021 don’t worry. It is going to be alright because of that loan you got with the super low-interest rate. Looking ahead I think 2023 will be more like 2019 than like 2021.
