Two Financial Positives for Today's Homeowners

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

Recently, I posted an article about why we aren't going to see a "bubble" in real estate.  Thinking back on this post, I did not include two VERY important Financial Reasons how homeowners are in much better position financially than they were in 2008.  During that time right before and during the housing recession, homeowners were oftentimes NOT in good financial positions.

In the current financial marketplace, homeowners have a LOT of EQUITY.   If a homeowner bought a home prior to 2015, even 2016, they may have a LOT of equity to tap into in case of emergencies. Unlike the upside down market days when home owners owed more on their homes than they were worth, today's home owners are in far better shape.

Many have been in their homes long enough to improve their FICO SCORES as well.   The jobs market has improved a lot since the housing recession.  In Phoenix, we're seeing record low foreclosures as forbearances have been resolved already.  We're also seeing many iBuyer companies snatching up homes, including any default mortgage homes, leaving lower inventory.  

So as we consider the market "shift" that has started to take place in some markets around the country, consider how homeowners are in a very different place now than in 2008 or 2009!   Some good news for a change! 

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Comments (10)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

The equity and balance of things kind of moves in this direction based on all these factors kind of hung together a lot of the time

May 18, 2022 11:12 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Jan,

It is so important to hear some good news for a change. You hit on a very positive note that homeowners have a lot of equity in their home now!

May 19, 2022 05:39 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Yes homeowners have so much equity in their homes and should be in a good place, and that's really a positive note!

May 19, 2022 06:37 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jan, we have so many homeowners sitting on a PILE of equity, some have paid their homes off, and sitting pretty!  

May 19, 2022 06:46 AM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

 Hi Jan adding to your good news =this time around there are not a gazillion 'liar loans' floating around waiting to go south if the market takes a dramatic shift - which I don't think is going to happen at this time.  Buyers also had a lot of cash down (or all cash sales) plus they were highly qualified for a loan. 

May 19, 2022 09:11 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Jan... right now home owners and prospective home sellers are sitting pretty... for the reasons you mentioned and because if they do decide to sell they will still get a premium price for their home.

May 19, 2022 09:24 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Jan - yes isn't it great for all of us who are homeowners.  We bought our Florida house in 2016.

May 20, 2022 03:46 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I get very tired of hearing of a market crash.  Ill informed people who want a particular outcome can not will it into existence.

May 22, 2022 07:44 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Dorie Dillard Austin TX  - yes!  Good news is always a bonus.  Here's to more of it! 

Thankfully so Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 !  With the negativity of covid, the economy, supply chain, it's nice to think positively! 

Pretty cool Joan Cox !  

May 23, 2022 03:42 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Yup Anna Banana Kruchten CRS, Phoenix Broker - that was listed in the first post that I included in the hyperlink.  Those nasty loans are awful!  

Premiums are a bonus Nina Hollander, Broker  - Amen!

Good for you Grant Schneider

So many realtors are spreading the "crash" scenario right now - super frustrating.  We aren't going to crash, but we might slow down!   Thank you for commenting Chris Ann Cleland !

May 23, 2022 03:44 PM