What will our real estate market look like for the rest of 2020? We’ve received a ton of questions about our market and where it’s heading. Many people have been drawing comparisons between our current market and the housing crisis we faced from 2008 to 2010 and fear we may be heading in a similar direction.
However, in those years there was a ton of inventory, and mortgages were given to virtually every applicant. There was almost no income verification or money down, so almost anyone could get a mortgage. Home prices were also higher and growing rapidly, and rents were significantly lower in those days.
In 2020 we have historically low interest rates, and qualifying for a mortgage is more difficult. Today we have a shortage of houses for sale, and you have to document everything and prove you have the income and assets to qualify for a mortgage. Rental rates are much higher now, so walking away from your property and letting it foreclose doesn’t make sense because you’ll end up renting for just as much, if not more in some areas. So comparing our current market to that of the housing crisis is like comparing apples to oranges.
Today we’re seeing a lot of consistency in our market, and buyer demand is there. Before the pandemic, over 900 residents were moving to Florida every day, so we may see more people moving here again soon. We’re seeing some great trends as we continue to move through the health crisis, and many businesses have begun opening back up. At the end of all this, we should have a checkmark shaped recovery, and we expect the third and fourth quarters to be strong.
With historically low interest rates favoring buyers and low supply benefiting sellers, it’s currently an opportune time to enter the market. We’ve been seeing more and more clients sell their current home and upsize to another bedroom or three-car garage by taking advantage of our market. If you’re sitting on a lot of equity, you may want to consider leveraging that by investing in a rental property. Our goal is to create opportunities for you and help you build wealth through real estate.
If you have questions about your house or the market, or if we can help in any way, please give us a call or send an email. We would love to speak with you.