The Market is Different than it was in 2008 & here's WHY

By
Real Estate Agent with RE/MAX Suburban
https://activerain.com/droplet/5mDC

A couple of points & differences between the 2008 market crash & what is currently happening in the real estate market.

LOTS OF DIFFERENCES.

People have much more equity & are on time with their mortgage payments than ever before. Interest rates are low which always spurs on the overall economy. Remember how many different services are connected to one house sale. People need lots of new stuff from blinds to carpeting & the economy benefits from all that & more.

Our inventory level in the Schaumburg Area is 55% below what it was last year in February. People who are selling their homes can expect good sales prices but definitely some inconveniences that we've never had to deal with before. Still, people are looking at homes every day. 

If you have any questions over these numbers or have questions on how your own home is doing at the moment, please feel free to give me a call so we can discuss your concerns.

 

the market is different than it was in 2008


Posted by

 

lyn sims remax suburban  Lyn Sims    Schaumburg IL Area    Northwest Chicago Suburbs  ●  (847)230-7324
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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Ginger Harper 03/17/2020 01:25 PM
  2. Joseph Doohan 03/17/2020 01:58 PM
  3. Will Hamm 03/28/2020 07:43 AM
  4. Barbara Todaro 03/28/2020 08:09 AM
Topic:
Real Estate Market Trends
Location:
Illinois
Tags:
home prices
schaumburg housing market

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Rainmaker
603,705
Sally Crane
WMS - Unity, WI
Woodland appraisal support.

Thanks for the update Lyn, well explained with all of the graphs.

Sally

 

Mar 18, 2020 07:34 AM #1
Rainmaker
3,408,497
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lyn and excellent blog that explains so much.  Can I reblog it next week?

 

Mar 18, 2020 10:06 AM #2
Rainmaker
5,333,514
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Lyn Sims great information for all to read.... the differences are monumental...

Mar 28, 2020 08:07 AM #3
Ambassador
950,069
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

WOW!!! 
Loved your YouTube Market Report!
Very engaging! 
Stay well - Lynn
(Your AR friend in Atlanta with two "n's")

Mar 28, 2020 09:52 AM #4
Ambassador
1,716,909
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Helping you find your way home.

Love this... and it's timely.

Mar 28, 2020 09:54 AM #5
Rainmaker
2,178,102
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Lyn Sims - The lessons of 2006-2008 served you well and you continue to be the Master of expertise in the sale of homes in your areas. Additionally, you have earned the respect of so many members within our real estate industry throughout America as a result of membership in ActiveRain. I like how this post turned from informational to educational to high importance. From one example to another, you proved your point. Buyers and Sellers will be proud to work with you and hire you for all their real estate needs - I know I would! 

Congratulations on an excellent FEATURE on ActiveRain!

Mar 28, 2020 10:18 AM #6
Rainmaker
716,174
Laura Filip
Laura Filip Broker , Opening doors for All Seasons of Life - Whitesboro, TX
What can we do for you today?

Thank you for sharing this with us. You are right is not the same atmosphere as it was in 2008. We are looking forward to a good year and will stay positive as we move forward. Have a blessed day. 

Mar 28, 2020 11:10 AM #7
Rainer
290,084
Stephen Turner
Burkentine Realty Group (Burkentien Builders) - York, PA
The BIG Guy of NEW HOME SALES

 Nice info and great video. Hope it brings you lots of views and keeps you on top in your market!

Mar 28, 2020 11:27 AM #8
Rainmaker
2,178,102
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Lyn Sims - Congratulations on a well-deserved FEATURE!!!

Cheers to many, many more features and successes too!

Mar 28, 2020 11:54 AM #10
Rainmaker
915,478
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Great explanation and data to back it up too. good post, good way to build contacts and hopefully drive some conversations.

Mar 28, 2020 11:55 AM #11
Rainmaker
2,732,354
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Excellent points, Lyn.  Many are trying to draw parallels w/ 2008 and 2001, but there are so many differences.

Mar 28, 2020 04:59 PM #12
Rainer
267,716
Caroline Gerardo
Pinnacle Home Loans - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Well written But I have to disagree with #1 all the no doc, easy doc, non QM, NINA loans were back in the past 24 months. They have now evaporated which mirrors 2006 until March 2007. And they were getting cash out to buy a boat, RV, rental 

Mar 28, 2020 06:08 PM #13
Rainmaker
1,825,427
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I think this is helpful information to share with our clients - the market is different and this is a different type of crisis.

Mar 29, 2020 04:48 AM #14
Ambassador
2,947,207
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

What's the % of new listings on the market for the past 14 days compared to the last two weeks of February?

Our inventory is low, but we've not gotten a lot of listings these past two weeks because seller don't want people in their houses.  

I do agree with this NOT being anything like 2008. But I do think real estate will ultimately be impacted greatly.

Mar 29, 2020 08:28 PM #17
Rainmaker
326,352
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

KCM charts are always informative Steve Harney does a great job

Mar 30, 2020 04:27 AM #18
Rainmaker
992,524
Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Great post, lots of sanity, facts and perspective here.

The 2007 Crash* was a great training ground for running a business during a pandemic, and you are correct, they are caused and fueled by completely different forces. We're not in a bubble, not in a crash. We are in a recession but, we were to be in one soon anyhow. We still have a low unemployment rate and low supply to high demand waiting to return post C-19. 

*CA went through it close to first if not first, so we unfortunately know it as The Summer 2007- Fall 2011 Crash.

Mar 30, 2020 09:17 AM #19
Rainer
9,018
Naomi Prusinski
Waves Realty - Indialantic, FL
Real Estate Agent serving Space Coast

Great article and well written, the graphs make it visually easy to understand and easy to share with a client.  Thanks for the info!

Mar 30, 2020 11:14 AM #20
Rainmaker
344,067
Sharon Miller
RE/MAX Platinum - Crane Hill, AL

Lyn,

Great, informative post. Can I add one important factor which separates 2020 from 2007-2008. The typical buyer and seller we work with today, do not "march to the same drumbeat" as their counterparts did.....leading up to the recession of 2008. As an exclusive waterfront specialist, I have witnessed a "criteria makeover" of sorts, by both client's and customer's alike, whereby, the typical mindset utilized to sell or purchase a property prior to 2008, has been replaced with a new set of protocols. As you pointed out, the "easy money" which existed prior to 2008, is no longer available.....with the simple taking of one's pulse and placing "your mark" on the dotted line. 

Error on the side of caution has become the new norm. Just yesterday, I had a sales contract implode as both the seller and buyer could not agree to split the cost to remove a storm damaged tree from a front yard. Imagine, refusing to pay four-hundred dollars per individual resulting in the truncation of a 200K sales contract? Go figure.

Buyers and sellers, as well as "newbie" realtors, need to be made aware of the "new normal" mindset, which today, is overwhelming increasing numbers of our public. Here's a tidbit which should add credence to the discussion, automobile dealers made an average gross profit of $140 on the sale of a mass-market new vehicle in the year 2019. The sale of a used vehicle however, five years old or less, generated an average profit of $950. 

Investing time in researching the habits of today's buyers and sellers will improve one's ability to address the "new normal" as it continues to unfold!    

Mar 31, 2020 07:04 AM #21
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May 31, 2020 02:14 AM #23
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