The cable news talking heads continue to bring up the topic of a possible recession on the horizon.
We all remember the Great Recession that roiled the world’s markets during the late 2000s and into the early 2010s. The International Monetary Fund called it the biggest economic meltdown since the Great Depression in the 1930s.
Pundits say the recession started with the collapse of the real estate market in the United States fueled in part by a subprime mortgage crisis, causing a collapse of the financial sector.
Is it going to happen again? Should people hold off buying a house until prices drop if a recession truly does occur?
According to the National Association of Realtors and Keeping Current Matters, the experts in the business are saying that that will not happen and here is why. There is not an abundance of homes, we have a shortage of new home supply. The mortgage industry is much different today than it was in 2007.
Today’s buyers have to have good credit scores and they are financing with fixed rate 30-year mortgages, a far cry from the real estate market in the early 2000s, when some could purchase a home with little to nothing of a down payment.
In addition, interest rates are at historically low rates allowing buyers to afford more of a home for less money.
For sellers, it is a perfect time to sell your home if you have been in it for a few years because you most likely have a good amount of equity and can put that money to work for you in buying your next home. If you are buying in the upper end price range there is more inventory to choose from.
Bottom line — it is still a good time to sell because prices are up and there are qualified buyers wanting to buy. It is a good time to buy because interest rates are low so buyers can afford more.
The American dream of home ownership is still very much alive according to the National Association of Realtors. For those non-home owners, a poll late last year revealed 85 percent want to buy a home.
So if you are ready to sell or are looking to buy, contact a local real estate broker who knows the local market. They will help you navigate the complex process of selling your home or buying your dream home.
Paulette Eaton is chair of the Lewis County chapter of Washington Realtors and managing broker at RE/MAX Key Land Company headquartered in Centralia.