Last week I asked all of you will real estate prices fall back to Covid levels? The real estate pros have spoken, I was floored at the results. My prediction is that it would be evenly split, but the results were just the opposite with 88% thinking that prices would not fall to covid levels while a minority (12%) think prices will fall substantially.
Key comments on where prices go from here:
The comments were very polarizing either supporting a huge drop or adamant that no huge correction was in store:
- Even with higher interest rates there is likely no returning to pre COVID level home prices l with the exception of a very large stock market crash. Which could bring down home prices to pre-Covid levels.
- They already have fallen in many markets as the fundamentals no longer support the insane prices
- Limited new supply in core and surrounding suburbs. High interest rates and capital gains taxes keeping seniors in existing homes.
- The country is two to three million short of demand. Prices might come down by 10% due to the costs of ownership like property taxes, home insurance, utilities, maintenance high interest rates, but demand is still there.
Key insights on will prices fall to Covid levels
Thank you everyone for your participation and insights in my survey. The insight in the comments from readers was amazing and I hope everyone gained a good perspective from your fellow readers. My key takeaway from this survey is that the overwhelming majority see some bumpiness but not a huge correction. On the flip side, I’m leaning towards a larger correction in some markets like Denver, but I’m also not convinced that we will not see a larger issue in the real estate market. Currently basically all the markets are correlated which means as markets reset, there could easily be a contagion effect. Thanks again and stay tuned for upcoming surveys 😊
Additional Reading/Resources:
- https://www.fairviewlending.com/will-real-estate-fall-to-pre-covid-levels/
- https://www.fairviewlending.com/rates-make-a-u-turn-should-you-panic/
- https://www.fairviewlending.com/will-mortgage-rates-fall-in-2026/
- https://www.fairviewlending.com/where-should-you-invest-in-real-estate-in-2026/
- https://www.fairviewlending.com/fed-drops-rates-why-did-mortgage-rates-barely-budge/
- https://www.fairviewlending.com/phantom-debt-soars-what-does-this-mean-for-real-estate-2/
- https://www.fairviewlending.com/never-buy-a-residential-condo/
- https://www.fairviewlending.com/the-war-on-landlords/
- https://www.fairviewlending.com/house-prices-hit-another-record-should-you-even-care/
- https://www.fairviewlending.com/root-cause-of-real-estate-price-declines/
- https://www.fairviewlending.com/will-real-estate-fall-to-2020-values/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. I’m not an armchair reporter/writer. We are an actual private lender, lending our own money. We service our own loans and own commercial and residential real estate throughout the country.
My day job is and continues to be private real estate lending/ hard money lending which enables me to have a unique perspective on the market. I don’t accept any paid sponsorships or ads on my blog to ensure accurate information. I’ve been writing this for almost 20 years and have over 30k subscribers. Please like and share my blogs on linkedin, twitter, facebook, and other social media and forward to your friends 😊. I would greatly appreciate it.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, and Florida. We are recognized in the industry as the leader in hard money lending/ Private Lending with no upfront fees or any other games. We fund our own loans and provide honest answers quickly. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games).
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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