Real Estate Prices Are Coming Down

Been getting a lot of questions lately relating to the housing market and a lot of people should be concern about how it may affect their own financial goals. However, like any change in the market, we need to make sure we have a good handle over our finances, have an updated financial plan and be clear of the opportunities and challenges the market presents.

One thing is always certain is that market changes will happen, so the real question is how ready/prepared we are when opportunities and challenge present themselves.

Like in life, we have to be adaptive to survive and thrive, so in our finance, we need to be proactive to take care of our finances and not let it run our lives.

Now that the housing market is cooling off due largely because of interest rates increasing causing all debts, including mortgages to be more expensive, making home purchasing more expensive, so sellers have to bring their prices down to make it competitive to buyers' budget.

So what does it all mean, will it all depends. Everyone’s financial profile is different and so are their financial goals. So when negative market events happens like this, there are people who will benefit and those who will not. However, like the saying goes, fortunes favor the prepared. There will always be opportunities, so how ready are you when it comes to your finances is the consistent question and concern. So we should not feel like we'll miss out or you will be in a negative situation for forever.

If you are a recent homeowner, the price of your home may be lower than what you had purchased it recently. If you are in the market to buy a home, you need to make sure you can afford the higher mortgage costs and weight that adjust your opportunity cost of not buying instead or delaying. Also, the cost of materials, labor, home goods, etc have also gone up. So, it all depends on your finances and your financial plan. As you can figure, current hosing conditions can present opportunities to negotiate for better deals, or it can be harder for you to make the monthly mortgage payments.