The “real estate bubble” is still a hot topic these days, and many homeowners looking to sell are concerned. Look back about a decade, and you’ll see it’s like deja vu all over again! In the 1990s, home prices dropped by as much as a third in major markets from coast to coast, the result of an inflation adjustment. It’s important to note that those large price drops were not experienced in all markets, for example, the Bennington VT real estate market did not experience such large price swings.
Sellers, buyers and agents all managed to survive, and eventually the real estate industry experienced amazing growth, which again may need adjustment. It’s helpful to realize that real estate is like the stock market, meaning it’s best to ride out the bumps on an otherwise smooth and profitable journey.
Home prices adjusting downward cause alarm for sellers, but just try to look at it in another way: what can be painful for sellers can be a great benefit to buyers, especially first-time buyers or families who would otherwise be unable to afford the purchase. Ultimately, this is good for the economy and for the real estate marketplace.
It’s a natural law: what goes up must come down. What’s bad for one party may be good for the other. Most people selling their home will also need to buy another, so a loss experienced on one side of the transaction could very well turn into a big gain on the other. The ultimate message: don’t panic.
The Bennington VT real estate market does not always track the same as the “national average” which is is what the media focuses on. In a declining market, you have to remember how high the Bennington VT real estate market has gone up, as compared to national averages. Since we don’t go as high, our area does not have as far to drop, we run more towards the middle of the road at all times.