There's not going to be a crash...

The real estate market has been remarkable, in that everyone is remarking on it! The historically low interest rates, the historically low active inventory, the huge housing shortage (5.5 million units nationwide) has made, well, history! People from all walks of life are looking at the market and wondering what will happen next. Will the market crash? Will there be tons of foreclosures as there were in 2007-2009? Will I be able to cash in on bargain basement deals? The good news is, the answer to all of these questions is, no.

The market may slow. Demand may hesitate. Sellers may take a beat. But life goes on. People will continue to look to real estate to solve life events: a job relocation, a new baby, an empty nest, an ailing parent who needs shelter in your house or a house close to yours all send us toward housing. The market will not crash with demand and supply remaining pretty much the same.

There will not be tons of foreclosures as there were during the last recession. Stronger banking laws and regulations have limited buyers to those who can afford to buy. The forbearance policies related to COVID-19 have given homeowners time to refinance, sell, or solve monthly mortgage payment problems. People who wish to stay in their home will, and those who wish to sell will do so, most likely at a profit.

The best the market can offer anyone wishing to purchase a new home is that things will slow down, a little. A home for sale may receive a few offers instead of 20. There may be a few more homes in your desired location or price point, but not dozens. And the bargain basement deals will be rare.

The other good news is that homeownership is still within reach. It is still a vehicle toward financial wealth, and our current administration is looking for ways to make it possible for you. If you’d like to learn more, come visit me over at FirstHomeEd.com.

All good things,

Diana Cohen