4 Positives about today’s housing market

September 7, 2022 By: Lexi Malen

In general I agree with much of what is said in this article.  First and foremost I do not believe we are headed to a home value crash, the reason is twofold.  The difference between the housing crisis of 2008 and now is that everyone that has a mortgage has had to qualify for it through traditional and normal guidelines.  In 2008 many of the loans that defaulted were qualified through very liberal guidelines that did not have a strong foundation in traditional lending programs.  Second, while the market is starting to shift to a buyer’s market, current home owner’s have equity and there will be no reason for those that are distressed on their loan payment to let their home go to foreclosure when they can sell and gain their equity to help recover from their current financial hardships.

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Article: 4 Positives about today’s housing market

Source: www.realtrends.com

Article Highlights

• Home sellers are currently experiencing a real estate market with increasing interest rates. In fact, since January 2022, rates have risen as high as 6.2%. Though not a direct correlation, interest rates generally go down when there’s a fear of recession.
• While homebuyers have a limited supply of houses to choose from right now, buyers and sellers should not pull out of the market altogether. There are actually more opportunities now for buyers to negotiate on terms. Sellers have to be more willing to negotiate during this time, unlike during the pandemic

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