Well spoken, engaging and professional, Erica was able to provide us with some insight into the current real estate market, and how unfortunately, may be resonating a downward trend.
She mentioned that once housing starts begin to decrease (i.e. less building is going on), the rest of the economy takes a hit. Considering the amount of people who may be employed in the industry, it can and will have a ripple effect on the rest of the economy.
Over the course of the past year, Erica highlighted the reduction of supply, although there may be an influx of buyers. The majority of potential sellers have found as of late that if there is not enough equity in their properties to cover all the closing expenses, that it is not justifiable to sell at this point. Those properties that have been on the market, specifically higher price points, have been sitting on the market for longer than past years, suggesting that prices may be inflated.
The unfortunate part of all this, is that once properties begin to sell at a lower cost than what everyone else is selling for, it will essentially depreciate the value of all the surrounding homes. Market value and appraisers research the past few months of closed properties, and if the overall values have dropped, everyone’s property will take a hit.
For more insight on how to protect your most valued asset, contact Erica Michella by visiting her website https://ericaminchellalaw.com/ or emailing her today.