As a southern California property appraiser, each year I attend Valuation Expo, the country’s largest trade show for real estate appraisers. It’s an incredible forum for learning, networking, and gleaning insights and forecasts on the future of the real estate market. This year’s expo at the Bellagio in Las Vegas was a brilliant collaboration on ideas and forecasts!
So what’s the consensus, you ask? The country’s largest lending institutions, real estate corporations, and appraisal management companies (AMCs) are each aligned this year in their projections that the housing bubble and prime seller’s market we’re currently experiencing is headed for a substantial correction. And soon! (Nothing like the correction and recession of 2008 expected, but notable, nonetheless.)
And what does this mean for the economy? Buyers and sellers? Realtors and Property Appraisers? Interest rates? Stock and bond markets? The construction industry? All that remains to be seen, and the next several months will no doubt involve disparity and some distressing fluctuations. But they’ll eventually deliver lucidity — allowing buyers, sellers, agents, appraisers, and lenders to plan and budget accordingly. After all, the past few years have seen price spikes and bidding wars that are unprecedented, and corrections are critical for long-term market stability.
So please stay calm, carry on, and plan accordingly. The housing industry may be headed for a significant adjustment, but as the great Helen Keller once said, “A bend in the road is not the end of the road, unless you fail to make the turn.”
Bidding Wars Fall to Lowest Levels Since 2020 -MSN article
Housing Crash 2021 Starts Here -Reventure Consulting
Home Listings Surge. Bubble Over? -Reventure Consulting
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