Explaining why the 2008 crash is nothing like today’s market.
Are we in a real estate bubble in 2021? Is the market about to crash? Lately, these are the questions that I get most often. I think these questions come from people remembering the 2008 crash. I can understand your fears, but I want to tell you that 2008 and today are two completely different situations.
The 2008 crash was the result of banking and loan mismanagement. What we’re experiencing today are extreme supply and demand issues. We simply don’t have enough homes for sale to satisfy all the buyers that are out there right now. It makes it very challenging for a buyer to find what they want. At the same time, it’s a great thing for the sellers because they’re able to get top value for their property.
What will change this? We’re not anticipating interest rates to rise very quickly, but if they rise, that will probably settle down some of the buyers. We have buyers saying “the markets are going up too fast, I don’t want to buy.” Analysts have said that if you’re buying in a market that is going up, that’s a good thing. If you buy at a lower point and the market continues to go up, your value rises as well.
For buyers out there, don’t hesitate to purchase right now. Get yourself pre-approved and get into the market. It’s going to be frustrating, and you do have to be prepared to move quickly, but you’re in a rising market, so your home is going to increase in value. For sellers, if you want to take advantage of the best prices we’ve seen in a long time, put your home on the market right now.
If you want to know exactly how your home fits into the market or the best way to go about positioning yourself as a buyer to purchase, reach out to me.