Debunking the Fear of a Housing Market Crash

Recently, I came across an interesting article from Current Matters that sheds light on some common misconceptions about the housing market. In this post, I'll be summarizing the key points of the article to help clear up any confusion and provide accurate information. According to  recent reports, 67% of Americans are concerned about an imminent housing market crash in the next three years. However, the current housing market data suggests that today's market is different from what it was during the housing market crash in 2008. During that time, banks lowered their lending standards, allowing almost anyone to qualify for a home loan or refinance their existing one. This created artificial demand, which led to mass defaults, foreclosures, and falling prices. Today, the lending standards are much stricter, and purchasers face much higher standards from mortgage companies. A graph based on data s from the Mortgage Bankers Association shows how things have changed. The higher the index number, the easier it is to get a mortgage, while the lower the number, the harder it is. The graph clearly shows that things are different today, and tighter lending standards have prevented a situation that could lead to a wave of foreclosures like the last time.   The number of homeowners facing foreclosure has declined significantly since the last crash. The reason for this is that buyers today are more qualified and less likely to default on their loans. Although the number of foreclosures has increased slightly, the total number is still very low. Experts also do not expect a drastic increase in foreclosures like the ones that occurred after the last housing bubble.   There were too many homes for sale during the housing crisis, which caused prices to fall dramatically. However, the supply of homes for sale today is limited, and there is still a shortage of inventory available overall, mainly due to years of underbuilding homes. But, the current unsold inventory sits at just 2.7-months' supply (national average) and  1.3-months' supply (Raleigh-Jan.TMLS) at the current sales pace, which is significantly lower than the last time. This means that there isn't enough inventory on the market for home prices to come crashing down like they did last time. The picture above is live, click on it for current months' supply info for Raleigh, NC It is essential to keep in mind that the data mentioned above should ease fears about another housing market crash. The current market is nothing like the last time, and experts have predicted that the situation is unlikely to repeat. Therefore, it is important to inform people who are concerned and not fully informed on the facts, as the current data provides reasons to be optimistic about the housing market. If you want to more about this subject, what all of this means for you as a buyer or seller, or just want to know the value of your home in this market.  Schedule a call with me https://calendly.com/aliciariverarealtor or click here for a free home valuation. Alicia Rivera/Realtor/Real Broker, LLC Images sourced from Current Matters

Unlocking High Returns: Exploring Raleigh, NC's Booming Real Estate Market for Home Sellers

5 Reasons Why Raleigh, NC is a Thriving Real Estate Market Raleigh, NC is one of the fastest growing cities in the country, and the real estate market is no exception. With an increase in population, job opportunities, and home values, now is an excellent time for home sellers to capitalize on the thriving real estate market in Raleigh. In this blog post, we will be discussing 5 reasons why Raleigh, NC is a hot real estate market and why now is a great time to sell your home. Growing Population and Job Opportunities: Raleigh has seen a significant increase in its population in recent years, and this trend is expected to continue. With more people moving to the area, demand for housing has increased, making it a great time for home sellers to capitalize on the market. Furthermore, Raleigh has a thriving economy with numerous job opportunities, making it an attractive location for young professionals and families alike. Increase in Home Values: According to Rocket, Homes in Raleigh have sold for 14.6% more than they did a year ago, and it's expected to continue to rise. This means that now is an excellent time for home sellers to take advantage of the increased home values and maximize their returns. Attractive Outdoor Recreation and Cultural Activities: Raleigh is known for its beautiful parks, lakes, and outdoor recreation opportunities, making it a great place to live and work. Additionally, the city has a thriving cultural scene with numerous museums, theaters, and festivals, making it an attractive location for those who appreciate the arts. (Blog post coming soon highlighting all the amazing outdoor recreation that the Triangle has to offer) High-Quality Schools: Raleigh is home to some of the best schools in the state, making it an attractive location for families with children. Furthermore, the local colleges and universities provide numerous opportunities for education and job training, making it a great place for students of all ages.  Strong Economy and Thriving Local Businesses: Raleigh has a strong and growing economy, with numerous local businesses thriving in the area. This creates job opportunities and helps to support the local economy, making it a great place to live and work. In conclusion, Raleigh, NC is a thriving real estate market with numerous advantages for home sellers. With an increase in population, job opportunities, home values, and a thriving local economy, now is an excellent time for home sellers to capitalize on the market. Working with a knowledgeable and experienced realtor can help you navigate the market and maximize your returns, so don't hesitate to reach out for assistance. Click here to check out local homes for sale