- A common question I get is
are we going into a recession?
Recession does not equal housing crisis.
According to Doug Brien, CEO
of Mynd Property Management,
he stated, "with the
exception of two recessions
"from 2007 to 2009
"and the golf war recession
from 1990 to 1991,
"no other recessions have
impacted the US housing market,
"according to Freddie
Mac home price index data
"collected from 1975 to 2018."
Here is an example of a
graph from information
from CoreLogic that shows just that.
Obviously, the last crash on
the housing market in 2008
saw a devastating decrease in home prices
because of what was
happening back in 2008.
In 2008, loans were rated as D loans
and were being sold as A loans.
Also back then, we had stated income loans
which is where people could
just say what they made
as far as income without
actually proving it.
Therefore, many couldn't
afford the payments
which led to many
mortgage defaults in 2008.
Also back then, homes were
selling a few months later
would appraise for tens of
thousands of dollars more
than the previous month.
That just doesn't make sense
and should have never happened.
This was just another thing
that led to the 2008 housing crash.
What happened in 2008 is vastly different
than what is happening right now.
Same amount of parts of the
economy are under pressure
such as airlines, leisure, hospitality,
restaurants and entertainment.
All those services are currently on pause
as people are sheltering in place.
So if we compare this to
9/11 and the dot com crash,
we see the stock market
dropping drastically
from September 2000 to October 2002.
However, at the same time,
we see an increase in
annual home appreciation
ranging from 6.6% to 8.6%.
I'm Joe Keegan, your local realtor
and I'm just sharing my
opinion on the market
and sharing with you what
the experts are saying
and I thought it'd be good
information for you to have.
Feel free to reach out to
me as I am here to help.
I know there's a lot
to deal with right now.
