You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!
What will happen to the housing market during the next recession? During the 2008 recession, the housing market crashed. In the years prior to what’s been called the Great Recession, subprime mortgages made buying a home accessible to almost anyone, including those who couldn’t afford to. As a result, there was a boom in homeownership and mortgages with little or no money down. As real estate prices declined dramatically, homeowners quickly found themselves “underwater” on their mortgages, meaning they owed more than the homes were worth. Struggling to keep up with payments they couldn’t afford amid massive layoffs and a stock market crash, millions of Americans began to default on their mortgages. It’s estimated that 9.3 million homeowners went through foreclosure or lost their homes. Some analysts argue that concerns over another housing market crash during the next recession are overblown. Laurie Goodman, founder and co-director of the Housing Finance Policy Center at Urban Institute, says it’s unlikely the housing market will crash again in an economic downturn. “Home prices aren’t expected to drop any time soon,” says Goodman. “In the past four recessions, they actually only dropped during one of them.” Greg McBride, chief financial analyst at Bankrate, notes that “anything goes” lending practices were a big part of why the last recession crushed the housing market. Today, there are stricter regulations in place under the Dodd-Frank Act to make sure this doesn’t happen again. Full Article: https://www.bankrate.com/mo…/buying-a-home-before-recession/
If you think long term, it's never really a bad time to buy a home. Real Estate has reliably risen in value over the long term. You're already paying somebody's mortgage, it may as well be your own.
Getting pre-approved for a mortgage is a crucial step in the home-buying process and it should be among the very first you take. A mortgage pre-approval helps you understand how much house you can afford, makes you more attractive to sellers, and alerts you to problems that may affect your ability to get a loan.
I can coach you through the homebuying process. Call me 408-561-1321
Be careful about falling in love with home value estimates you see online because many are far above market value.
Those home sellers who “anchor” on inaccurately high estimates will overprice their homes for sale and then it's emotionally hard for them to lower the price. These online valuations are often off by 10-30% from the value arrived at by an appraiser or professional real estate agent. For a quick valuation of your home send me an email with your home address and I’ll provide you a no obligation valuation of your home. Email: firstname.lastname@example.org
If you are reading this while your home is on the market, be aware that theft from homes that are being shown is not uncommon. The most commonly stolen item is prescription medicine, followed closely by jewelry and small electronics.
Agents don’t always closely supervise their clients when showing homes, so that the “buyer” might wander alone through the house, with free reign to open doors and drawers. If your house is on the market, assume that someone is going to be nosy and go through everything you own. Consider renting a small storage unit to temporarily store expensive or cherished small items. Get a lockable box for your prescription medicines that you need to keep nearby. You could even consider getting a small home-monitoring camera to watch as people view the house.
Of special concern—even more so than when individual agents are showing your property to buyers—is an open house where the general public is invited. If you decide you want an open house, ask your agent to require visitors to sign in and list their names and phone numbers at a minimum. If the house is large enough, some agents will enlist a fellow agent to stand on the second floor or separate wing.
Still, a real estate agent is not a security guard. And requiring a sign-in is just a small deterrent, as there’s no guarantee that someone will list a true name and contact information. When you’re having an open house, you should be especially diligent about locking and storing all valuable items.