Is another Housing Crash in the Cards?
It is so easy to let fear in without carefully examining the situation. Yes, housing prices are coming down, yes housing prices came down in 2006-07, yes they came down in 1987. Had you purchased at those times look what happened. Home prices rebounded and went even higher.
I had written in my inaugural letter that the stock market leads the real estate market. Since records have been kept the price of homes have followed the stock market average. Whether the average be the Dow Jones or the Standard and Poor 500 or any other index created. Why? The averages are economic measurements of our economy. With every reaction down there was a rebound up and those rebounds kept going onward and went beyond the lows that created the concept of "crash".
10 years from now all those who went back to their rental or their under sized house will look back and regret not moving forward.
How can one make a mistake? Interest rates are at historic lows. There will be a new normal in real estate.
This past week we have seen prices cut in various sections of Silicon Valley and large drops in sales prices versus list prices. Should you be fearful? Or, should you begin looking for opportunity.
For sellers it is a opportunity to move up, or an opportunity to create a large cash cushion and move into an updated home that fits your family needs.
For the buyers it is the opportunity of a lifetime. Get your dealing hats out and find a realtor who will work hard to get a price less than list or at a discounted price that will increase in time. I have my name out there if you don't realise it.
What will be the new normal. First there will be an end to "Open Houses". Virtual Tours will replace the Open House and visitations will come once the buyer is ready to make an offer, or has made an offer and can substantiate funds to cover purchase and or a commitment from a lender.
The new normal may find buyers and sellers speaking to one another on Skype, Team, Zoom or any service that can create a one on one atmosphere. This I believe will allow buyers to carefully examine the merchandise before making an offer, reviewing the disclosure packets and asking their agents pertinent questions from the disclosures. Remember, nothing is unimportant.
Your real estate agent is here to serve you, not flip you and move onto the next buyer/seller. If you get that feeling get another agent.
Where are buyers active? They are active throughout Silicon Valley. Sales are not as numerous as they were pre-pandemic and pre February 2020 stock market. They are still there.
Getting used to the new normal will take new forms from the California Association of Realtors. New guidelines in viewing homes with face masks and social distancing. Sellers realise that the lender may ask for documentation from employers that the employee will not be laid off due to COVID 19 issues. Buyers, be prepared for larger down payments, be prepared for jumbo loans being harder to find.
Putting your parents in a Senior's Facility will become harder. I already have a realtor associate who has taken in her aunt from a Senior's Facility. Expect parents to begin looking at +55 communities in the eastern hills where COVID 19 was a rarity.
There will be changes, and for every change there will be opportunities. Look for those opportunities whether you are selling or buying. Get onto my Facebook, LinkedIn and Twitter pages to get values in today's real estate market.
The the reader that asked what I think about the economy and market let's say that the economy and the stock market will not move as quickly up as it did down. It will be a gradual affair. I think that the low of March will be challenged or broken. When that occurs homes value opportunities will occur....get ready.
I had written in my inaugural letter that the stock market leads the real estate market. Since records have been kept the price of homes have followed the stock market average. Whether the average be the Dow Jones or the Standard and Poor 500 or any other index created. Why? The averages are economic measurements of our economy. With every reaction down there was a rebound up and those rebounds kept going onward and went beyond the lows that created the concept of "crash".
10 years from now all those who went back to their rental or their under sized house will look back and regret not moving forward.
How can one make a mistake? Interest rates are at historic lows. There will be a new normal in real estate.
This past week we have seen prices cut in various sections of Silicon Valley and large drops in sales prices versus list prices. Should you be fearful? Or, should you begin looking for opportunity.
For sellers it is a opportunity to move up, or an opportunity to create a large cash cushion and move into an updated home that fits your family needs.
For the buyers it is the opportunity of a lifetime. Get your dealing hats out and find a realtor who will work hard to get a price less than list or at a discounted price that will increase in time. I have my name out there if you don't realise it.
What will be the new normal. First there will be an end to "Open Houses". Virtual Tours will replace the Open House and visitations will come once the buyer is ready to make an offer, or has made an offer and can substantiate funds to cover purchase and or a commitment from a lender.
The new normal may find buyers and sellers speaking to one another on Skype, Team, Zoom or any service that can create a one on one atmosphere. This I believe will allow buyers to carefully examine the merchandise before making an offer, reviewing the disclosure packets and asking their agents pertinent questions from the disclosures. Remember, nothing is unimportant.
Your real estate agent is here to serve you, not flip you and move onto the next buyer/seller. If you get that feeling get another agent.
Where are buyers active? They are active throughout Silicon Valley. Sales are not as numerous as they were pre-pandemic and pre February 2020 stock market. They are still there.
Getting used to the new normal will take new forms from the California Association of Realtors. New guidelines in viewing homes with face masks and social distancing. Sellers realise that the lender may ask for documentation from employers that the employee will not be laid off due to COVID 19 issues. Buyers, be prepared for larger down payments, be prepared for jumbo loans being harder to find.
Putting your parents in a Senior's Facility will become harder. I already have a realtor associate who has taken in her aunt from a Senior's Facility. Expect parents to begin looking at +55 communities in the eastern hills where COVID 19 was a rarity.
There will be changes, and for every change there will be opportunities. Look for those opportunities whether you are selling or buying. Get onto my Facebook, LinkedIn and Twitter pages to get values in today's real estate market.
The the reader that asked what I think about the economy and market let's say that the economy and the stock market will not move as quickly up as it did down. It will be a gradual affair. I think that the low of March will be challenged or broken. When that occurs homes value opportunities will occur....get ready.
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