Factors to consider before preparing for a probable real estate “crash”

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Factors to consider before preparing for a probable real estate “crash”
Keep yourself motivated It’s not surprising that a lot of rumor about a potential real estate market crash are floating around. You will hear that the market will take a hit like it did in 2007, but the fact is that even though the real estate market may fluctuate, a crash like the one in 2007 is rare. So keep yourself informed about the latest developments in the real estate market and plan your steps accordingly. Real estate market performs differently in different places In different countries the dynamics of real estate market is different.  Even in different cities the way market is performing won’t be same. For example, the real estate market is doing great in Denver doesn't mean it will be performing equally great in some other US city. The conditions are different than 2007 It was the finance market which brought the crash of real estate market in 2007. Finance market supports real estate loans. The reason behind a potential real estate crash is attributed to the economic slowdown brought by Covid-19 pandemic. But the COVID-19 pandemic has not deterred homebuyers, the primary reason is record-low mortgage rates and the secondary reason is a demand for larger homes with offices for remote workers. A bigger home can provide a protective shelter during health crisis, a make shift office and a make shift school for virtual classes for kids. So we can clearly see that the conditions now are entirely different from those in 2007, plus there is a high demand and low supply of homes for sales. In such a scenario the probability of a nationwide real estate crash is very low.

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