Blog

There’s been some concern lately about another housing market crash.
Maybe you’ve read articles linking today’s environment with the Market
Meltdown of 2008. Even with the talk of recession, this real estate market is
very different and that means that most experts do not expect a crash, just
a normal ebb-and-flow slowdown. There are some significant differences in
today’s situation:

Loan Qualifying
Heading into the 2008 crash, loans were very easy to find. Almost anyone
could qualify for a loan with zero down payment and lower FICO scores.
The lending industry was taking huge risks, and this pushed home prices
higher, artificially. With stricter lending policies in place, not only do
borrowers need to qualify properly, but appraisals are based on true value,
avoiding over-inflated prices.

Housing Supply
Another difference is the housing supply. As home prices soared, so did the
number of homes for sale. Currently, there is still a shortage of available
inventory for the buyers still looking for a new home.

Equity Levels
Another huge difference is near record equity for most homeowners. The
strong housing market during the pandemic pushed home values higher
than ever before. Contrast this to the Market Meltdown era of short sales
and foreclosures, and it’s clear that most sellers can still afford to negotiate
and reap a healthy gain in the process.

What this means to you
The bottom line is that if you are a buyer looking to purchase or a seller
ready to move, there is no reason to wait or worry that there is a crash on
the horizon. The frantic pace of the market has slowed, interest rates have
risen, but opportunities are still available in this market.

It may come as a shock that many people purchase a home before ever setting foot inside. These buyers may be moving to a new country or city far away, or they may not have the time or resources to visit for a home search before the big move. Not everyone has the option (or the desire) to rent for a few months while they find a permanent home in their new location. Most homebuyers would prefer to purchase a house before they arrive, so they can move their belongings and quickly get settled into their home.

There are a few things you can do to make the process more manageable if you’ve considered buying a house unseen. The first step is to find a realtor in the area that you can trust. Let them know your circumstances and that you’ll need them to help vet potential properties for you. They’ll be able to provide you with a link to a virtual tour if it’s offered, or schedule a meeting where they can walk you through the house via FaceTime or another video-based app. This will help you feel like you’re there in person and give you the chance to ask your realtor about any potential issues that may pose a problem in the future. You’ll also be able to see any features that you love, which will help you make your final decision.

Another great option is to have a family member or friend who lives in the area stop by a few open houses or take a tour with your realtor of any homes that you’re interested in. It’s a great idea to involve someone that you know and trust, to help spot any red flags or deal-breakers you should be made aware of before signing on the dotted line.

When the time comes for you to move in, be prepared for the unexpected. There will always be a few things that you didn’t expect when you’ve purchased a home unseen. However, make the best out of the situation and stay positive. It really is possible to find your dream home, even if you can’t see it before closing.