What a Great Idea !

 

Is there going to be a housing collapse in the near future? We are hearing crazy things about this Market.

 None of the experts say this will happen in the next year. But who can predict the future? Few people foresaw the housing market crash 13 years ago that ignited a worldwide recession. Fueled by low interest rates and loose mortgage lending, the housing bubble burst, some nine million families lost their homes to foreclosure or short sale. Housing values plunged 30% or more. But an entirely new regulatory agency was created to enforce this new regulatory framework. Lenders who do not comply with these standards risk severe penalties. As a result, the housing finance marketplace is now more robust and safer than it was 15 years ago. Any dip in the housing market will be cushioned by these stricter regulations.

No one could have predicted it. Not the economists, not the real estate agents, and not the nation’s homebuilders. But rising crime in some areas and the pandemic, caused an emotional run-on housing unlike any other.                                                                                             

Americans, unsure when they would be able to get back out in the world again, were looking for more indoor and outdoor space. They wanted dedicated rooms for working and schooling at home.

With new buyers continuing to enter the market and not enough homes for sale to meet demand, home prices are still going up. But keep this in mind: If the number of houses for sale goes crazy high and the number of buyers willing to buy them suddenly plummets, home prices would fall and that’s when a crash would be something to worry about. And don’t forget, pandemic-related mortgage bailouts are set to expire this summer. Other factors to watch: If interest rates rose too quickly. If Home prices rise to a point where affordability is diminished. If loans suddenly become harder to get, or an economic slowdown occurs due to government policies. These are all concerns, but not predictions.

Despite these concerns, the experts say that it is unlikely that the housing market will crash in 2021.

The longer the pandemic continues or the weaker the economy gets, the more of a gap there will be between those who can afford a home and those for whom the prospect of homeownership will become less and less attainable.