There is a lot of uncertainty regarding the real estate market heading into 2019. That uncertainty has raised concerns that we may be headed toward another housing crash like the one we experienced a decade ago. Before you freak out….. read below.
Here are four reasons why today’s market is much different:
1. There are fewer foreclosures now than there were in 2006
A major challenge in 2006 was the number of foreclosures. There will always be foreclosures, but they spiked by over 100% prior to the crash. Foreclosures sold at a discount and, in many cases, lowered the values of adjacent homes. We are ending 2018 with foreclosures at historic pre-crashnumbers – much fewer foreclosures than we ended 2006 with.
2. Most homeowners have tremendous equity in their homes
Ten years ago, many homeowners irrationally converted much, if not all, of their equity into cash with a cash-out refinance. When foreclosures rose and prices fell, they found themselves in a negative equity situation where their homes were worth less than their mortgage amounts. Many just walked away from their houses which led to even more foreclosures entering the market. Today is different. Over forty-eight percent of homeowners have at least 50% equity in their homesand they are not extracting their equity at the same rates they did in 2006.
3. Lending standards are much tougher
One of the causes of the crash ten years ago was that lending standards were almost non-existent. NINJA loans (no income, no job, and no assets) no longer exist. ARMs (adjustable rate mortgages) still exist but only as a fraction of the number from a decade ago. Though mortgage standards have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago.
4. Affordability is better now than in 2006
Though it is difficult to afford a home for many Americans, data shows that it is more affordable to purchase a home now than it was from 1985 to 2000. And, it requires much less of a percentage of your income today than it did in 2006.
Bottom Line
The housing industry is facing some rough waters heading into 2019. However, the graphs above show that the market is much healthier than it was prior to the crash ten years ago. SO call me @ let me help you figure out if buying or selling is right for you!
Brandi J. Newland, Real Estate Broker | 614-778-4520
Brandi is a founding partner of RE/MAX Right Now and is a 14 year veteran in Real Estate. Brandi found professional success after a this past year when she received several awards & was in Top Producer Magazine. Her awards span from local to nationwide. Locally she received the $25 Million dollar award, the state awarded her the Presidents Club Award, thru RE/MAX she made it to the Executive 100% Club AND The Columbus Dispatch named her brokerage the "#1 CBUS Top Pick in Central Ohio!" ALL of this was because of her hard work, dedication to her trade & HER CLIENTS! Without her devoted clients none of this would have been possible.
Brandi has made high level commitment to education by obtaining a BS from The Ohio State University and traveling the country to be mentored & coached by several of the most highly acclaimed people in Real Estate. Brandi's savvy negotiations skills & cutting edge marketing strategies helps her clients win in any market. Thanks to her loyal clientele, personal referrals & repeat business that form the foundation of her career in and around the Central Ohio area! Brandi lives in Grove City & loves the direction & growth that her city has been enjoying that she accepted a position on the Jackson Township Zoning Board.
Brandi is everywhere on the internet including all forms of social media, so check her out or call her anytime without obligation. She is ready to work for you today! 614.778.4520 | www.BrandiSellsGroveCity.com | BrandiNewland@remax.net | #RelaxItsBrandiWithREMAX
Graduate from The Ohio State University
2007 ~ Brokers License
Columbus Board of REALTORS® $1, $5, $10 & $25 Million Dollar Club Recipient
2017 ~ The Columbus Dispatch CBUS #1 TOP PICK (Voted by past & current clients)
2017 ~ Featured in Top Producer Magazine
Multi-Million Dollar Producer since 2004
2015 ~ RE/MAX Executive Club
2016 ~ RE/MAX 100% Club
2017 ~ RE/MAX 100% Club
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