People ask me all the time now: “So, things are slowing down, huh?” And when I confirm their suspicions, they nod and say, “Well, it had to happen eventually.”
My response to that is: Ain’t that the truth. With Phoenix homes selling at the speed of light and prices rocketing up just as quickly, the market wasn’t easy or healthy for anyone. Now don’t get me wrong, many people benefited from real estate in the last year, but it was a pace that was bound to wear the market out a bit.
Fortunately, where we’re at right now is much closer to what could ever possibly be considered a ‘normal’ market and it’s a lot more comfortable for a lot of people. I think plenty of people over the last year or so had begun to think of the real estate game as quick and easy money. In reality, real estate always has been and in the long run always will be a safe and secure long-term investment. Sure, markets will dip and hit standstills, but overtime, whether it be fast and furiously or slow and steadily, real estate prices will increase. It’s still a good investment, but those who were looking for a quick buck have now moved on to the next scheme.
Anyway, in my weekly sales meeting yesterday, along with the market’s current pace, we discussed interest rates. Though they are still incredibly low from a historical perspective, rates are creeping up. You can still get a 30-year fixed for just under 6%, which is fabulous, but who knows for how long.
And that’s the word on the street.