Chicken Little – The Sky is Falling!
For those of you who don’t remember the nursery rhyme, you may remember a recent movie in which Chicken Little fears the sky is falling when, in reality, it was just an acorn that fell on his head. We can get ourselves in such a panic over things that are not a big deal. What seems like a big deal in the moment, can sometimes be easily resolved or not have any significance a few months, weeks, days, or even hours later. Lately, when something has been bothering me, I write it down. I edit it, read over it, and keep it. I will read it several times throughout the day and if it still has the same impact, I will deal with it then. I have learned that when I react to a situation immediately, I can regret it later. If I wait and let things settle a bit, sometimes there is no need to confront the issue at all. Sometimes, I realize that I looked at it all wrong or misunderstood. I ask myself if I can change it. If I can’t, often, there is nothing to do but move on.
I have seen this, recently, in real estate. Many Buyers thought the sky was falling when the mortgage interest rates were rising, the home inventory was low and the houses that were on the market were taking longer to sell. Individually, those can seem like doom and gloom is setting into the real estate market. In reality, if you look at the history of mortgage rates in our country, we have been enjoying historically low rates for 10 years now. In the 1970’s, 30-year fixed interest rates were under 8%, Rates began to rise in the early 1980’s and were at an all-time high in 1981 at 18.63%. Guess what? People still bought houses and people still sold houses. Yes, as a Buyer, it would be great to be loaned hundreds of thousands of dollars for under 10% interest over a period of 30 years. However, as my title attorney says, if I was going to give you this much money, I’d want much more return than that!
Are rates rising, yes. So do most things. However, at some point (and I am starting to see it now), people will just go on with life with a new normal and Seller will sell and Buyers will buy. Real estate is still a great investment. Sellers will become more realistic about the prices they can get and Buyers will understand that they may not get everything they want for a “deal”. In the meantime, the next time you think the sky is falling, take a step back and get some perspective. Chances are, things could always be worse.
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur babies, Tyler and Livvie, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.