With everything going on in the world today, many people are concerned that the housing market will be the next industry to experience a setback. Currently, the United States is not experiencing a housing crisis and I don’t see that in the immediate future either. Here’s why.
A recession doesn’t immediately mean there will be a shift in the housing market. Recessions do indicate a shift in the overall economy but it doesn’t apply to all industries equally. The housing crisis in 2008 was a perfect storm of many different issues. Currently, there are fewer homes available than buyers in many markets and that excess demand will continue to place positive pressure on home prices. Further home prices have appreciated during three of the 5 most recent recessions.
Foreclosures are not expected to explode like 2008. There were many reasons that foreclosures were so prevalent in 2008 but increased equity in many homes compared to that time along with government action to temporarily halt foreclosures will ensure we don’t see a repeat of that scenario.
While real estate is an important part of our economy, it isn’t the driving force. Without a doubt, COVID-19 will leave a lasting impression on us all but we all still need a place to live and with the government involvement and assistance coming to the American people, housing is not positioned for a direct hit.
If you have questions and concerns about the real estate market, give us a call. We be happy to have a detailed discussion with you about your situation at any time. Further, if you are ready to buy or sell a home, don’t wait because of this. We can still help you with your real estate needs throughout this pandemic.
The Chris Wylie Team is your ultimate real estate resource for Houston, The Woodlands, Spring, Cypress, Katy, Tomball and the surrounding areas. Visit our website for for detailed information regarding today’s real estate market.