- The COVID-19 pandemic is causing an economic slowdown.
- The good news is, home values actually increased in 3 of the last 5 U.S. recessions and decreased by less than 2% in the 4th.
- All things considered, an economic slowdown does not equal a housing crisis, and this will not be a repeat of 2008.
- Prepare for delays
- Write in contingencies to protect yourself
- Be Patient – all services are effected, title and escrow, lenders, appraisals, inspectors
This economic response is very different from our 2009 experience. Our last economic melt down, there was a glutton of homes for sale and due to loan defaults, very strict lending that cut out many purchasers from moving forward. It slowed down our recovery.
This time a round, we’ve been in a housing shortage and the big differences, this is plenty of affordable loan options available.
When we see a stock market crash, we often see a real estate boom or in this case – perhaps a real estate maintenance – as people divert money and investments from a risky stock market to an investment they can live in – Real Estate – historically real estate always appreciates and you’ll come out head in the long run.
Will there be a price impact – we’d be a fool to think it wouldn’t – but I think that is all relative. Buyers have always set the price – so as they are cautious prices will reflect that – however we all need a place to live and I think we’ll see a lot of people – who have been waiting for an adjustment ready to take advantage of low rates and possibly slower demand. I know Warren Buffet buys in a down market – and he knows a thing or two.
The bottom line – don’t freak out. If you have your home and don’t need to move – don’t fret. If you are selling or were thinking of selling, hold tight. RIght now the market is affected by the shelter in place but we were expecting a great Spring Season and now Fall!
We are all in this together –
Let The Caton Team know how we can be of service.
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