Are we headed for Market Crash?
Are we headed for a Market Crash?
If you are thinking about buying or selling a home, there is one question that hangs over your head like a dark cloud. The question is: "Are we headed for a market crash?". Most people tend to think that the real estate market is going to crash, and it is easy for them to point out specific factors that they think will lead us there.
But, are we really headed for a market crash? Probably not. If you are worried that you might have to buy or sell your property before the bubble bursts, don't worry! Here are the reasons why you should get back in the game whether you are a buyer or a seller.
Reason number one, Spec houses. Spec houses right now are almost non-existent, before the housing crisis in 2007-2008 buyers could go easily into a subdivision and tour one house after another and they were all available to buy! So, we had more houses available to buy than we had buyers. Once the crash happened, subdivisions would have 10 to 20 vacant houses and the developers went into foreclosure. Nowadays, most subdivisions have wait lists, and there just aren't any spec houses available.
The second reason why the crash is not gonna happen is because of the interest rates and mortgages. Interest rates are so low that it is more advantageous to buy a house than to rent. Rent prices are going up at a higher rate than homes are, so the advantages to buy are still there. And, I would also mention that before 2007 we were seeing lending standards so low, any one could get a 100% loan and how much money you made was not really a key factor. Crazy right?
For the sellers out there, don’t worry! Even if you might not get a lot of showings, the buyers looking are very serious about purchasing a house. And I always say, you only need 1 buyer. For houses that are priced well, we are still getting list price or above.
Do you want to know where it might go wrong? You are talking to an agent who doesn't know how to price that house or you have a great real estate professional giving you advice and you are not just listening. So be strategic when selling a house, and make sure you are talking to someone with the experience to get your house sold!
If you're a buyer or a seller who's worried about the market, talk to us! Our advice and services will help you make a smart decision. We’re here for you, before and after your home purchase or sale.