We've had a great run in Florida housing since the "Great Recession" of the late 2000s. It's been over 10 years and the housing market has continued to stay at pace. However, there has been continuous speculation for several years that we are due for a "correction" in the market.
In fact, I have had a few homeowners in the last couple of years opt to sell their home and move to a rental in anticipation of this market decline, against my sage advice. They were each expecting this collapse to happen within a year of their home sale.
As real estate agents, we are taught that the housing market is cyclical and that it cycles, on average, every 7 years. That's why there's been a lot of buzz about when the market will reach it's tipping point and start to decline.
I've read many articles suggesting that the decline was inevitable within the following year for the past several years. Here's the thing.... nobody has the magic, crystal ball and even if they did, does it really matter?
I read a recent article titled "Housing Markets Aren't Usually Hurt During A Recession". It goes on to share eye-opening information that, excluding the "Great Recession", home values have typically continued to grow through national and statewide recessions over the past quarter-century. It also goes on to state that appreciation averaged 4.6% during economic growth and 4% during recessions.
The "Great Recession" was an unusual event and is highly unlikely to to occur again within our lifetime. While there are certainly housing price dips, the data shows that home values consistently rise whether we are in a recession or not.
In a nutshell, you're better off to play the "long-game" with home ownership and capitalize on the equity gained rather than attempt to predict the market and catch it just before the decline. You can be assured that your equity is safe just where you are and your best bet to sell is when your home needs change, not with the housing market cycle.
Wondering if it's a great time to buy or sell? Contact me today!