Is Your Home Market Over-Valued?
Is Your Home Market Over-Valued?
In every industry, there are people that think positive and people that look at things from more of a negative point of view. Even when things are going their best and everyone involved is making money hand over fist, you always have a dedicated group of nay-sayers that are predicting doom and gloom.
A few months ago, those voices started to get louder and louder in the real estate market. The positive thinkers pointed to incredibly low mortgage rates and record sales and said everything was all right. Unfortunately, in this case, the doom and gloomers might have been on target.
A new survey shows that an increasing number of housing markets might be overvalued, and as the logic suggests, an overvalued real estate market translates into a slower real estate market.
The main culprit is rising interest rates.
The rate for fixed mortgages (30-year) is up even more.
But how do you know if your housing market is overvalued?
While this may be a sure sign of a pending real estate slump, the best thing any potential investor can do is take a long, hard look at all available research before you decide to take a positive or negative outlook.
Regards
Gawie
0825192904
The Dexterous Guy
Handy Man Services
Big Bay
West Coast
Cape Town
South Africa
