With the novel outbreak of the coronavirus, many are practicing social distancing, staying home, and saving their money to stock up on the necessities. This has resulted in a significant drop in the stock market that many point to as the beginning of a recession. Many are wondering, "What will happen to the housing market?" as they think back to the crisis in 2008. However, that recession was a direct result of a housing market failure caused by a mortgage bubble. The financial industry has since had its debt instruments reformed.
The housing market has been much stronger in recent years, with a prevailing buyers' market making it easy to sell your home. The most prominent effect of the COVID-19 outbreak on the housing market comes from the Fed's interest rate cut. This rate has been cut to the 0 range, the same rate that lasted throughout 2008's recession. This low rate for banks pushes down the rates lenders are willing to give for mortgages. In fact, just last week, the mortgage rate was down to 3.29% from 4.41% this time last year. To top things off, home prices have remained stable in 4 of the last 5 recessions, including a 4% home price increase in 2001! With this, we have the development of a hybrid market that favors both buyers and sellers, making it the easiest it's ever been to buy and sell real estate.
Don't miss this opportunity because of fear and panic! The best remedy for those is preparedness, and we will ensure every step of your home-buying or home-selling process is prepared for and conducted in an entirely safe, risk-free manner. From video-conference appointments, to virtual home tours, to eSigning documents, we have an arsenal of digital tools to facilitate social distancing. Rest assured all the proper precautions can also be taken when vetting people to come tour your home or a home you wish to tour in person.
For more information on how WE can Help YOU get through this time of uncertainty and panic, and come out on the other side with the home you want and money still in your pocket, Fill out your name, number and email on this page and we will be in touch with you soon!
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