If you’re having flashbacks to the pain inflicted by the 2008 housing crash right now, that’s understandable, but I’m sharing six reasons why you shouldn’t worry.
Here are six solid reasons why what we’re facing now won’t lead to the housing market collapse that scarred us in 2008:
1. Mortgage standards. Our bank practices today are nothing like the bank practices we had 12 years ago. Regulations are stricter, and there’s no loosey-goosey lending happening.
2. Home prices. Back then, prices across the nation were soaring. Though we’ve seen a multi-year peak in prices here in our state, that’s not because of speculation—good old-fashioned supply and demand was the culprit.
3. Inventory. Even before COVID-19 dominated every aspect of our lives, New Hampshire was seeing the lowest inventory of homes for sale in 15 years.
4. We need new homes. New Hampshire needs an estimated 15,000 homes to house its current workforce. This shortage will keep prices stable.
5. Affordability. Thankfully, when compared to other Northeastern markets and the country as a whole, New Hampshire is still a fairly affordable place to live.
6. Equity. Compared to 2008, current homeowners have built up a lot of equity on their homes, allowing them to weather an economic storm. 12 years ago, it was the opposite, as many homeowners were upside down on their mortgages.
Real estate does not take a break. There may not be 100 people ready to buy and sell now, but suppose there are just 30. If the inventory is still low (which it is), those 30 will certainly be buying and selling. To give you an anecdotal reference, I’m working with 14 buyers right now who are all telling me, “Corina, please find me a place, I need to buy.”
As best it can, the real estate industry will continue to operate during these trying times. Agents across the nation are taking precautions to keep themselves and their clients safe and navigate transactions, interacting with clients remotely whenever possible, limiting the number of people who come to a home showing, or leveraging virtual home tours to replace in-person contact.
I’m adjusting to the new normal, and I’d say it’s going smooth so far! At 4:08 in the video above, check out a behind-the-scenes look at my home studio and the technology allowing me to help my clients.
As always, if you have any questions regarding this or other real estate-related topics, don’t hesitate to reach out. I’m here to be a resource and a voice of calm in this wild time.