If you’re thinking about buying a home and you think a crash is coming, Dave Ramsey’s thoughts might help.
- Real estate prices soared to record highs during the pandemic.
- Some believe the market may crash soon, but not Dave Ramsey.
if you are thinking Buy a house, you might want a market crash. House prices soared during the pandemic, mortgage Interest rates are also on the rise this year, and you may find it difficult to purchase a property in the current situation. But if a crash hits and prices plummet, housing will become more affordable.
Fearing that record-low interest rates due to COVID-19 will cause the real estate market to bubble, some speculate that a crash is coming, but that is not always the case. In fact, according to personal finance expert Dave Ramsey, bankruptcy is unlikely anytime soon. Here’s why:
Dave Ramsey has a clear answer to the question of whether a housing market crash is imminent
Ramsey’s opinion on whether a market crash is imminent is clear and very firm. “If you’re in a buying or selling position, don’t wait for the ‘housing market crash’ because it won’t come.” Ramsay Solutions read blogs.
Whether you’re a buyer hoping for a crash or a seller fearing a crash, it’s helpful to understand why Ramsey is in a decisive position on the direction of the property market. That’s because there’s plenty of data to back up his belief that prices won’t go down any time soon.
Here’s why Ramsey doesn’t believe the crash is coming
There are several main reasons Ramsey doesn’t think the housing market will experience a major downturn anytime soon.
The first is that most forecasts suggest house prices will continue to rise next year. While this rise is far from the double-digit price increases that occurred in 2018 or 2019, costs are expected to rise by about 3% to 4% over the course of 2023. “We’re going back to the average increase in single-family homes over the last 50 years,” Ramsey points out.
Ramsey also explained that supply and demand drive home prices (and everything else). While housing supply is low, demand is high. “There’s been a shortage of housing for the last 20 years or so, and the demand is so high that prices are high.” Supply fell even further during the pandemic when people wanted to buy property.
But even after the pandemic, Ramsey doesn’t think supply is likely to meet demand anytime soon. Few new homes have been built in recent years, and with wood shortages further reducing construction costs, millennials are in the prime of home buying. “There are 12 million more families today who want to own a home,” Ramsey said. “This leaves too many buyers chasing too few homes.”
All of these points are valid ones, so there’s reason to doubt Ramsey is right about whether a crash is imminent. However, no one can predict it with certainty. As such, people looking to buy a home soon may not want to wait for a crash to put off their purchase. If demand is high and supply continues to be in short supply, prices will rise further, which could backfire.
The Ascent’s Best Mortgage Lenders of 2022
Mortgage rates are at their highest levels in years and are expected to continue rising. To ensure the best possible rate while minimizing fees, it’s more important than ever to check rates with multiple lenders. Even a small difference in rates can save you hundreds of dollars in monthly payments.
There better mortgage come in.
Get pre-approved in as little as 3 minutes, without rigorous credit checks, and lock your rates anytime. another plus? They do not charge an origination fee or a lender fee (for some lenders he can be as high as 2% of the loan amount).