Real Estate
The economy seems to be at a tipping point and people are getting nervous. If you are thinking of buying or selling a home soon, you may also be on edge. Whenever the real estate market seems to be threatened, 2008 market crash flashes through minds. Now, with foreclosure rates having risen, we ask if the current state of the economy is sending us toward a market crash.
The Reason For the 2008 Crash
We can sum up the reason for the recession and market crash of 2008 by saying it was bad management. The real estate market was hot leading up to the crash, people able to buy houses like crazy! And there was a reason for that. People were being given loans that lenders knew would be all but impossible to keep up with. As foreclosure rates skyrocketed, the economy suffered and we entered a recession.
Since that time, more regulations have been put into place to prevent the risky lending practices from continuing. The hope being that we can prevent a recession like this from happening in the future.
Current Foreclosure Rates
The foreclosure rates right now are on the rise. But history tells a much larger story. When you compare the foreclosure rates of today versus the time before the 2008 crash, we are far below those numbers. In comparison to 2020 and 2021, we are up. However, additional regulations were put into place during that time to keep people in their homes during unprecedented times. When looking at a more full look at the history of foreclosure rates, it puts us at ease with the market
The Role Of The Economy
The uptick in the number of foreclosures over the last year could be speaking to the state of the economy as a whole. When life is more expensive, tragically, it can be hard to keep the house. Many homeowners do have a buffer to financial ruin in the equity that they have in their home. This could be why we don’t see foreclosure numbers being even higher. While nothing specifically shows the connection, it can make you wonder.
Don’t Risk It, Sell It For Cash!
Cash offers are a great asset to sellers, helping you take advantage of your equity and get financial relief. The process is tailor made for people who have specific needs that are hard to cater to when listing your home on the open market. The cash buyer has more freedom to offer you what you need. Need a fast close? Don’t want to do upgrades? Don’t want to risk the financial side of the deal to fall through? These type of desires make the thought of taking a cash offer for your house appealing.
Eric with ASDM Homes has specialized in cash transactions in San Joaquin and Stanislaus for almost 20 years. He is here to help you make your next real estate move as quickly as possible! Contact us today to start the process and allow Eric to give you a cash offer on your house.
