Last week I wanted to do a quick check-in on the state of the stock market. This week I figured I’d continue with this state-of-the-economy check-in and briefly hit on the housing market. Anecdotally, the housing market seems to be garnering more attention than the stock market lately. Despite the stock market falling into a bear market this year, I’ve had far more conversations about what is going on with housing than what’s happening with stocks.
My wife and I closed on our home -- a house in a suburb outside of Manhattan -- two weeks before Covid hit New York City. Two years later, we found ourselves yearning for the city (a suburb in the middle of lockdown is a big adjustment from living in the city pre-pandemic). We saw that estimates for our house had skyrocketed, which emboldened us to look elsewhere. But of course, everywhere else had skyrocketed, and now the mortgage rates are more than double what they were when we locked in our mortgage. So, yeah, we're staying put. I'm very interested to see how the real estate market shakes out, though. It does feel like a something's-gotta-give kind of scenario. To your point, however, it could be a gradual adjustment versus a crash. Hoping for the former of course.
My wife and I closed on our home -- a house in a suburb outside of Manhattan -- two weeks before Covid hit New York City. Two years later, we found ourselves yearning for the city (a suburb in the middle of lockdown is a big adjustment from living in the city pre-pandemic). We saw that estimates for our house had skyrocketed, which emboldened us to look elsewhere. But of course, everywhere else had skyrocketed, and now the mortgage rates are more than double what they were when we locked in our mortgage. So, yeah, we're staying put. I'm very interested to see how the real estate market shakes out, though. It does feel like a something's-gotta-give kind of scenario. To your point, however, it could be a gradual adjustment versus a crash. Hoping for the former of course.