Dear Readers: The real estate market is seeing fast-rising prices and market mania. Nationally, median home list prices shot up 17.2% year over year in April, to hit a new record high of $375,000, according to Realtor.com® data. Meanwhile, incomes haven’t risen anywhere near as much. Many are asking where is this all going to lead to? Are we going to see the real estate crash of 2008? The good news is the culprits behind the 2008 meltdown crash aren’t as present this time around.  

We did some research and would like you to read an article by some experts on Real Estate economy.

Why isn’t the housing market on the verge of crashing?

“The commonality is the FOMO (fear of missing out) and the overall frenzy,” says Zonda’s Wolf. (ChiefEconomist @ building Consultancy Zonda) “But I don’t think that alone is enough to cause the market to crash.”

The economy is also improving, and forbearance programs have kept a flood of homes from going into foreclosure. The high home prices should give even strapped owners a cushion, allowing them to sell their homes and potentially even walk away with a profit. That’s a departure from the late 2000s, when many folks owed far more than their homes were worth on the market.

The loss of a home “would create some personal hardship,” says Danielle Hale. (Danielle Hale Chief economist Realtor.com) “But they’ll probably be able to walk away and be in OK financial shape.”

Could some folks overpay for homes that will lose value?

Buying a house is often the biggest investment that most folks will ever make — so they want to make sure it will increase in value. But many folks are wondering if the value of homes purchased today at record-high prices will fall once the COVID-19 pandemic is over and the market returns to some semblance of sanity.

Will they be able to sell them for at least as much as they paid? Or will they wind up owing more on their loans than their homes are worth? The experts say most buyers shouldn’t worry. The lack of supply combined with the high demand should keep home prices stable — for the most part.

“It’s certainly possible that home prices can decline. But I don’t think it’s likely we’ll see big declines,” says Realtor.com’s Hale. “It’s more likely prices will flatten where they are.”

In addition, the market may cool off a little as the pandemic ends and people feel safe in the cities and traveling again. That doesn’t mean that demand won’t continue to be strong and more homes for sale will suddenly materialize. But it may take some of the pressure off — leading to, perhaps, only single-digit price increases in the coming years.   

Lake Oconee Buyer and Sellers, the market is strong and we foresee it to continue.  If you are in the market to sell your home, now is the time to list. If you are a buyer, the future looks good, as to keeping the value.  

THOUGHT FOR THE DAY:  We all need a little comfort and light today — God didn’t promise days without pain, laughter without sorrow, nor sun without rain. But He did promise strength for the day, comfort for the tears, and light for the way.