I hope this email finds you and your family well and you are staying healthy.
This month I’d like to briefly address the 2020 real estate market in relation to COVID-19.
I’ve read many articles regarding a likely recession as a result of the businesses & industries that have had to close. Should we find ourselves in a recession, keep in mind a recession does not equal a housing crisis. In fact, many experts believe housing will be the sector that leads the economic recovery.
The housing bubble and collapse of the financial market in 2007-2009 was unique. I worked for one of the biggest mortgage lenders at that time and I know first hand risky mortgages, inflated home values, maxed out equity and excessive inventory led to short sales & foreclosures that depreciated home values by almost 25%. Today’s market looks nothing like 2008.
Today there are stricter mortgage lending regulations, low inventory rather than a surplus (great news for Sellers), and homeowners are holding more equity in their home.
In 2020, many housing market analysts say we will still see appreciation in our home values. They predict continued appreciation post COVID-19 at a rate of 3% (compared to the pre-COVID-19 predicted appreciation of 4.7%) which is contrary to the rapid home value appreciation during the 6 years leading up to the crash.
If you have ANY questions about our local market and how I’m assisting my Buyers and Sellers, I’d love to talk more with you. Ask me how we can conduct VIRTUAL showings and open houses as well as utilizing 3D Technology to showcase your home as an alternative to in person showings!
On a personal note, my family and I are grateful for the spring weather and we’ve spent a lot of time outside together. We have been walking, biking, shooting hoops in the driveway and working on our landscaping.
Our home’s curb appeal has never looked better 🙂
Take care and stay safe!
F.C. Tucker Geist Fishers
The Tumbarello Group