Real Estate in Uncertain Times

When thinking about Covid-19 I am reminded of lessons we learned during the great housing recession. The first lesson is to BREATHE. I went to bed many nights with the serenity prayer in my thoughts. It is important to focus our energy on that which we can control and do our best to let go of the rest. Panic fueled much of what sent our economy into a tailspin in the late two thounsands. Let's not contribute to the great toilet paper panic of 2020 become the great housing depression of 2021. In the last few weeks, I have had many people reach out to me with concerns about what Covid-19 might mean for the housing market. Here are a few things I tell people when they call or email me.

Helpful things to remember:

• Losses and gains do not actually exist until you sell. It doesn't matter what the market value is for your house until you are trying to refinance it or sell it.

• The affordability of your house doesn't change just because the market value has. If nothing has happened to affect your ability to make your house payment, then the value doesn't need to affect you. ~If you have experience a significant loss to income and are concerned that it will effect your ability to pay your mortgage, please call me right away.

• Home ownership is usually cheaper than rent and when builders halt major rental building projects, this is especially true. ~You are not likely to be able to rent (afford) as much house as you currently own.
  

• Home values at the end of 2019 were substantially higher than their highest value prior to the great recession. This means that if you purchased a house in 2005 (at the top of the market) and held your house until 2019, you made a substantial profit on that investment. ~ Yes, it was a stressful time but your patience paid off..

• It is always better to work with an agent to dispose of a property that you can no longer afford than it is to simply walk away. Agents know how to help you leave with as little damage to your credit as possible and often times with relocation incentives from you lender. ~ Banks don't really want your house and they really don't want it if you destroy it on the way out.

• Uncertainty is stressful. Reach out to people you can trust; ask questions, get information. Don't spend too much time on the internet. Always know that you are not alone.

As those of you who have worked with me recently know, I've been saying that the housing market is headed for a soft correction. With the uncertainty that Covid-19 presents and the loss of this spring's market frenzy as well as Parade of Homes, housing prices are likely to soften. For those of you still looking to buy, this may bring opportunities. For those of you looking to sell and move up there are opportunities as well. For anyone who has retirement tied up in their home's equity and will need to access that soon, home demand is still high and real estate sales are currently classified as essential services. NOW is the time for you to sell if you need to. NOT next week. Call me today. If you need to wait but will also need to sell in the coming year, you may want to consider options like a reverse mortgage until the market stabilizes. My team and I are here to assist you.