Here’s why I don’t believe we’re headed for a market crash.
I want to be real with you. There’s a lot of buzz going around out there about the market crashing, the world ending, and everyone becoming homeless. I’m here to tell you that those fears are a little overblown. The reality is that we will see a correction, but we’re not going to see a crash. Prices will likely start to normalize, but as far as homeowners ending up underwater, I don’t believe it will happen.
We have a lot going for us right now. Underwriting is tight, and buyers are well-qualified. Interest rates remain extremely low, and there are a ton of good borrowers looking to make purchases.
Back in 2008, we didn’t have those conditions. We had bad lending practices, and lenders were giving giant adjustable-rate mortgages to unqualified and uninformed borrowers. The banks have learned their lesson, and even if we do see some sort of influx of foreclosures, they won’t flood the market like they did in 2009.
“There are many safeguards in place to prevent a panic.”
I also think that we’ll see this happen gradually over time. If you’re an investor out there, it’s still a great time to buy. You can lock in a low interest rate now, and you might be able to get a better deal later.
I think you’ll be able to take advantage of some of these opportunities stemming from a market correction, but I just don’t see a crash happening. There are many safeguards in place to prevent a panic, and the powers that be understand that we can’t have another one of those.
If you’re still skeptical about a crash, I’d love to have a conversation with you. If you have any other questions related to real estate, I’d love to speak with you as well. I look forward to hearing from you soon.
