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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