There are already no shortage of experts weighing in on the future real estate market, and there is little doubt that over the coming months there's going to be considerably more. As everyone reading this already knows; I have a crystal ball, it's my secret power that allows me to sell real estate and write real estate blogs. Now that my secret has been disclosed here are a few things to keep in mind over the coming month. *
Why the Housing Market isn't Likely to Crash Like Last Time!
- None of the "experts" has a crystal ball and not one of them has been through this before.
- Mortgage Requirements are much tougher now than they were leading up to the 2008 Crash.
- Appreciation has remained around 5% annually rather than in the bubble range of double digits in the years immediately prior to 2008.
- Supply and Demand, where there was an over supply between 2005-2007, we see the exact opposite now where there has been an undersupply for the past few years.
- Percentage of homeowners income going towards their mortgage has dropped significantly and unlike the last time the Government and Banks are working together to offer homeowners immediate need based financial relief on their mortgages to avoid costly foreclosures.
- Prior to the 2008 crash, homeowners were using their homes as ATM machines, the total debt load on homes today is only 25% of what it was at the end of 2007
- The Brookings Institute just released their projections on the areas most likely to be negatively impacted by Covid19. Chapel Hill- Durham was listed as the #2 spot to be least impacted.
There's a lot of evidence showing that today's housing market is nothing like it was during the last recession. Let's connect to talk about your questions and specific needs. My NC Homes is tech savvy. Virtual conferences, showings, closings are no problem at all. #Inittogether
* See the first Bullet Point