What to Expect in the Housing Market in 2021

Dated: February 10 2021

Views: 108

This month's video series is all about What to expect in the Real Estate Market in 2021 are we going to see a crash??? ?

With bidding wars and lack of inventory many people are asking us if we feel the market may crash.  You know the saying, what goes up must go down. ↕️

I understand how scary it may be thinking about what to do. ?

After selling hundreds of homes myself, this is a very unpredictable time, even I get worried, But let’s truly compare what happened back in 2006 when we had one of the biggest crashes in American history. 

According to the National Association of Realtors Chief Economist Lawrence Yun, he says and I quote “Such a frenzy of activity, reminiscent of 2006, raises questions about a bubble and the potential for a painful crash. 

The answer: There is no comparison.  Back in 2006, dubious adjustable-rate mortgages taxed many buyers' budgets.  Some loans didn't even require income documentation.  Today, buyers are taking out 30-year fixed-rate mortgages. Fourteen years ago, there were 3.8 million homes listed for sale and home builders were putting up about 2 million new units.  Now, inventory is only about 1.5 million homes, and home builders underproducing relative to historical averages.” ?

So, the thing to notice from that quote was when he said, “There is no Comparison”. 

Also, major contributors to the crash back in 2006 was the fact that stated income loans were being given to buyers.  Buyers were being qualified for a loan that they simply could not afford, and in many cases, little paperwork was needed to qualify for a loan, someone would simply “State” what they made and that was considered enough.?

That is NOT the case now!!  Lenders pretty much want your first-born child in order to approve you. ?

They go above and beyond in qualifying buyers for a loan and making sure they have the means to pay.  That should give us some relief in respect to the housing market and its sustainability.  Also, homes were appraising at exceedingly higher values from one week or one month to the next, had a significant impact on the crash, that is just NOT happening anymore. 

There are stringent guidelines for appraisals and the amount a bank will lend for a home.  I feel we should all take solace knowing that there are many more factors that led to the crash of 2006 that we just do not see today.?

We’re always here to help.  Reach out anytime even if you’ve just got questions.  And remember, Lisa Taylor with Homes by Lisa and eXp Realty, for your home, Taylor Made.?

Blog author image

Lisa Taylor

Originally from Leeds, England, Lisa Taylor decided to make Florida her home. She has lived and worked here for almost 30 years, most of those being in Palm Beach County. She lives in Wellington with ....

Latest Blog Posts

Market Update June 2021

Market Update June 2021Central Palm Beach CountyIf you haven't been watching the market this month, or even if you have, I have a quick over-view for.

Read More

You Want to Sell your House ... But where do you go?

ave you been thinking of selling your home BUT are worried about where to go in this tight market?There is a lack of inventory which makes the decision to sell all that much harder. But there

Read More

5 Ways to Maximize the Return on your Investment

Thinking about selling your home? Even in this crazy market it’s important to maximize the return on your investment.;?'?? ??? ???????? ? ?????? ?? ?????? ???? ???? ???? ??? ??????? ??? ???

Read More

Need Help in a Sellers' Market?

Let me ask you a question!How many times have you heard one of these over the last year? It's a Crazy Sellers Market You don't need to do anything to sell your house Houses are flying off the

Read More