While the economy’s status continues to be a source of concern, most economists predict that low supply and high demand will continue to fuel home price appreciation.
They key to communicating this with your clients is helping them understand why the market is different than the one that led to the housing collapse.
Before the Great Recession, the housing market had:
- Irresponsible mortgage lending
- An oversupply of homes
- Overtapped equity
Today’s market looks the opposite with:
- Stricter lending practices
- An undersupply of homes
- More equity
Showing both buyers and sellers this slide should help calm fears that buying a home now is a good financial decision. Plus, low mortgage rates have made homes more affordable than ever, making this the perfect time to “move up.”