IS THIS A REPEAT OF THE 20008 MARKET CRASH?
TRYING TO FIGURE OUT WHEN TO BUY?
ARE THE PRICES GOING TO DROP?
FORECLOSURES? SHORT SALES?
These are the types of questions on everyone’s mind at the moment in light of the current state of the world due to Covid-19. While the market is expected to slow in terms of growth, there are many indications that this will not be a repeat of 2008 and that we probably will not see the drastic price drops that many are expecting.
In order to make an educated guess on the market, it is important to analyse and understand the current market and how it differs from last time.
SUPPLY & DEMAND
A very important difference is that today, unlike 2008, the housing market has a supply that is near record lows, and demand is near an all-time high – something seen nationwide as buyers are bidding on limited supply of homes for sale.
Unlike 2008, where the majority of homeowners would immediately tap into whatever amount of equity became available, most homeowners now have accumulated a healthy amount of equity on their current homes, this is key when thinking of foreclosures & short sales expectations.
Before 2008, it was hard NOT to get a mortgage as qualifying was easy – this lead to many homeowners acquiring properties more expensive than they could really afford. Today, lending standards are more rigorous and harder to qualify. This equals a more stable and safer market.
HISTORIC LOW INTEREST RATES
Mortgage rates for 30-year, fixed rate home loans are at record lows. If the rates remain low or even drop further, this could help prop the housing market.
At the end of the day, in Real Estate, it is all relative to location. While the market is expected to slow in terms of growth, the Federal Government has implemented measures that are designed to prevent a wave of foreclosures and keep a healthy housing market. Our local market, primarily composed of Single Family homes & strong school systems combined with historic low mortgage rates make this a perfect time to purchase.
HOMEOWNERS: WHAT ARE MY OPTIONS?
As a homeowner, it is important that you understand your options and the differences between the payment assistance programs that various lenders are offering:
Deferment: Allows for repayment OVERTIME or by adding it to the end the loan.
Forbearance: Repayment is due in a LUMP SUM at the end of the deferment period.
If you are thinking of Buying, Selling, or simply want to evaluate your options,
Call us now! 305.776.0899
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