Although you might be feeling like you have deja vu by seeing real estate prices climb and climb, this is not the same market as we saw in 2008. We are seeing a lot of sellers and buyers waiting for the other shoe to drop, but it’s just not happening.
Back in 2008, we had an oversupply of so-called “Ninja loans” (No Income, No Job or Assets). You could pretty much get a loan with 0% down up to $500,000 if you had a working pulse. This was a recipe for disaster, and many are still reeling from the effects.
The down payments and loan guidelines today are much different than they were back then. Buyers are putting down 30%, 40%, or even 50% on their homes. Homeowners have much more equity than they did in the past, and the strong buyer demand is gobbling up houses in multiple-offer situations where prices keep rising and rising.
“We’re helping homeowners buy houses before they even sell.”
If you’re considering selling a home, now is the best time to do so. According to a recent survey by Fannie Mae, 57% of consumers believe now is a great time to sell, citing favorable mortgage rates, high prices, and low inventory as their primary reasons. If you have an investment property, it’s a great time to cash out of that and put the money into a new property or another investment vehicle.
Right now, we’re helping homeowners buy a house before they even sell their current one. Many are rightfully hesitant about selling because they’re worried about not being able to find a new home. We work with companies that will help you purchase the new home, give you time to sell your current one, and make the move smooth.
What’s going to happen over the next year? The expectation is that we’ll see mortgage rates slowly increase. Since hitting their low in December, they’ve risen and climbed to their highest levels since November. As rates rise, buyer demand will slowly start to dwindle.
If you have any questions about buying a home, selling a home, or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
