Here’s why I don’t foresee a housing crisis affecting buyers and sellers.
You might be wondering whether our real estate market will turn around this year considering the state of the economy due to the pandemic. Clearly, the economy went on pause after the initial outbreak. I don’t think we’ve ever seen anything like this.
Major financial institutions like JP Morgan, Goldman Sachs, Morgan Stanley, and others predict a V-shaped recovery for the economy, where it bounces back just as quickly as it declined. Historical analysis shows that pandemics are usually V-shaped, and society typically recovers quickly enough from any damage to avoid affecting home prices in the long term.
Right now buyer demand is very strong; buyers are just waiting for more inventory to become available. Everyone keeps asking me whether we’re heading for a recession. My response is that we might be, but that doesn’t necessarily mean we’re heading for a housing crisis too. According to Fannie Mae and Freddie Mac’s home pricing indices, only two recessions have ever impacted the real estate market: the Gulf War recession and the Great Recession of 2008.
In the past five economic downturns, these two recessions marked the only times that home prices dropped. In 1991, they dropped 1.9%, and in 2008, there was a brief period of decline where the lowest drop was 19.7%.
What does this mean you should do right now if you’re thinking of selling? First, consider getting a market analysis done for your home so you can stay updated with the latest information to make a wise decision. You should also prepare your home to get maximum exposure and attract buyers. It’s just as critical to work with a real estate team who can support you through all of that.
If you decide to work with Sherlin Realty, the process starts with scheduling a virtual consultation so we can meet with you, talk about your needs, and develop a customized market plan. Then we’ll set up a virtual staging appointment with our professional stager so they can give you any advice you need to prepare your home for sale. What’s more, we’ll provide a list of things you do (and do not) need to spend money on to get the most money for your home.
Technology has become a huge part of the process as well. We’ll leverage high-definition photography, virtual tours, and walk-throughs to put your home at the top of every real estate website out there. We’ll use all kinds of software to identify ideal buyers (and their Realtors) who are a good fit for your home.
The bottom line is that if you’re thinking of putting your house up for sale or want to be connected to what the market is doing, give me a call so we can schedule a consultation and start planning. If you have any other real estate questions, feel free to reach out to me as well. I’m happy to help.