Are you Ready for the Housing Crash? The Reference by Seth Williams
Hey, everyone. It's Seth Williams and thanks for tuning into the second episode of The Reference.
So as we mentioned last week, this blog is going be all about the housing recession and the economic recession that's going happen in the next couple years. Sneak peak, housing recession, not going happen. So here's the deal, , about 50% of all economists across the entire United States are basically saying that , more than likely there's going be a recession next year or the year after...But, a large percentage are claiming in 2020 going be the year and that's mainly due to the election year which obviously happens every 4 years. So, although the stock market is definitely going be volatile, and it's higher than ever right now.. housing actually should not have that recession. So, if you actually look back at all the last five recessions, it's important to kinda examine history and kinda see what's happened beforehand. When we look at the last 5 recessions, whether it be 1980, 1981, '91, 2001, , and of course, 2008, only one of those really had a housing crash and that was of course in 2008 when we saw the market dip almost 20%. Back in , 2001 it went up, '91 it barely went down less than 2%, and every other year it was up 3, 4, or, 5%..
When you think about the housing market as it is right now, , we're actually anticipating anywhere from a 3 to a 6% rise depending on area. Fannie Mae, Freddie Mac, The National Association of Realtors, they're all saying a huge increase in home prices here , in 2020 and 2021 and for the next several years. So what does that mean for all of our home buyers and home sellers out there?
For all you potential buyers / sellers here's the deal, you gotta still think about buying and/or selling. If you think about how 2 to 4 to 5% , rise in appreciation over the next several years is going work in your favor as a buyer, that's a lot of compounded equity in your property. So if you bought a house right now, three, four, or five years from now on average, you're going build that percentage in equity back. So, five years from now you might have close to $40,000 in additional net worth that you didn't have if you didn't yet if you never bought in the first place, and thats on a 250k home. So most homes in the Boston market are obviously more than that, meaning you would build approx. double that equity. Oh, by the way, rents continue to climb, right..So, not only did you gain that $40,000-$80,000k in net worth, but you stopped throwing away a lot of cash by paying on rent. So, think about all those items when we're thinking about buying in this hot real estate market.
So what if you're a home seller out there? For the last decade and a half homeowners have built a ton of equity....And right now across the US, most home owners have more equity than any generation has had before. Obviously the market's going continue to go up and up like I just talked about. So if you need to, or have thought about selling, rest assured you can capitalize on that built up equity, and take the win. Naturally a real estate professional like myself is going try and get you the most for your home. At my firm, we do some exclusive marketing to get your home sold, and over this past calendar year are selling homes at 101 to 102% of list price. One of the best things to do is get your home on the market in a peak market like the fall or the spring while invetory is a bit more limited.
So if you thought about selling, it's still a great time to reach out to me and we can plan to get your house on the market in the spring , before the actual stock market starts having some volatility, but remember housing again, won't. Whether you're buying or selling in this hot market, , have the confidence that the recession will not affect housing and it's still a great time to buy. And so give me a call here at Ledge & Young Real Estate 781-342-0052. , you can reach out to me direct at [email protected] or visit sellinboston.com and we'd love to be able to help you out. And thanks for reading episode two of The Reference.
Thanks for tuning into The Reference. You guys want to keep learning more about real estate from Seth, make sure you subscribe to The Reference YouTube channel and follow us on social media, Instagram and Facebook. If you have any questions about real estate, you can contact Seth at 781-342-0052, and we'll see you guys next time.