Don’t Panic. This is Not 2008
Times are definitely weird right now. There is no doubt that many of you may be a little nervous that we could be headed toward another big recession, similar to what we saw in 2008. However, all signs point to that not being the case and here’s why:
- Any economic downturn that we may be facing right now is NOT due to housing. In 2008 we saw the bubble burst due to inflated home values and incredibly loose restrictions on mortgages. Since then, the mortgage industry has become more stringent with lending standards and appraisers are carefully monitoring home values to avoid excess inflation.
- Rates are extremely low. In an effort to stimulate movement, the Fed has dropped rates to unheard of levels. This means that those with the means to purchase, could be experiencing enhanced buying power and confidence. This also means good things for investors!
- Forced time at home, means many people may notice that they have outgrown their current space. Whether that means needing a dedicated office space, an extra common space, or a larger yard, many families may decide it is time for a bit of an upgrade.
- As employers turn to “work from home” protocols, there is no doubt there will be some realization that the expensive office space they are paying for month in and mouth out may no longer be necessary. This could empower workers to move from city centers and into more remote areas while keeping high-paying jobs.
As the “shelter in place” requirements start to lift, the real estate market is going to most likely going to pick up right where it left off. Buyers are still looking and inventory remains low. Because of these factors, there is every indication that there is no major recession in sight.
If you are looking to buy or sell in the Sun Valley area this spring or summer, give us a call. We would be happy to discuss your specific needs and strategize the best way to take advantage of our current market conditions.
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