Q: Is the real estate market heading in the same direction as 2006-2008?
A: While we can’t predict the future, we do spend a lot of time researching the market and seeing what economists are predicting.
One thing to keep in mind is that our current market is drastically different from our market in 2006-2008. We have an extremely low supply of inventory in the majority of the country (meaning there are more buyers looking for homes than there are homes for sale) which has driven up home prices.
Secondly, homeowners have a substantial amount of equity.
We pulled this from the Homeowner Equity Report on CoreLogic’s website: “In the third quarter of 2020, the average homeowner gained approximately $17,000 in equity during the past year. This marks the largest average equity gain since the first quarter of 2014.” This creates peace of mind for anyone who may need to sell (in the fact that it’s not likely many sellers are underwater on their mortgage).
There are also higher standards for loan qualification today than there were in 2006-2008.
Lastly, there are a lot of buyers on the market right now who want to take advantage of our historically low interest rates.
We want to help our clients to make smart real estate decisions so with all the madness in the market and the “headlines” out there that might scare people into thinking we’re heading into another housing bubble, we thought it would be helpful to share these details.
If you’re considering leveraging the equity in your home while also taking advantage of low interest rates, let’s chat! we can put together an equity analysis based on your home’s current market value vs what you owe and we can take a look to see if now is a good time for you to make a move!