As we move into 2019, we are coming off a housing market high. Mainly high prices due to limited inventory and high demand. We are seeing these items level themselves this year and many wonder, should we be preparing for another housing crash?
Home prices continuing to moderate and inventory remaining on the market a bit longer should not cause homeowners or potential buyers to panic. There is one overarching explanation for this, today’s market is quite different than the market of twelve years ago that brought the “big” crash.
What reasons are behind this explanation? According to a recent Keeping Current Matters blog post, there are three. They are:
1. HOME PRICES: We are not seeing homes depreciate in value as significantly as they did during the housing crash. The level of appreciation is just slowing.
2. MORTGAGE STANDARDS: In order to obtain a mortgage the standards are much higher than those leading up to the last housing crash which tightened lending laws across the board.
3. FORECLOSURE RATES: Mortgage delinquency rates have dropped to a record low.
You’ve read these facts, and are wondering what it means for you? Buying or selling, or even renovating, a home is a big decision and the pros and cons should always be weighed carefully; no matter the market conditions. The conditions we are currently seeing just mean to tread cautiously, but they should not stop you from achieving your real estate goal. The best first steps would be to discuss your goals, thoughts and concerns with a realtor, as well as a mortgage or financial professional.