Let’s start the conversation with the obvious… we do not have a crystal ball, or Doc Brown and a Delorean, so we cannot predict the future.
According to a recent article published by the Home Buying Institute (homebuyinginstitute.com), the answer to the question of whether a real estate crash is imminent in 2020 depends on the duration of this current Coronavirus crisis. There are, however, many indicators that a crash is unlikely, and that we will likely NOT see a massive housing crash like we experienced in 2008.
HBI thinks, and DFY agrees, that there may be a bit of a slow down as fewer home buyers are looking to buy homes, but that spells GREAT NEWS for you and me. If there is a slowdown, and there is a sudden build-up of inventory, we may very likely see a shift from a seller’s market back to a buyer’s market… in other words, those who take action over the next few months will likely find themselves in a far better buying position than you may have found yourself in even last month.
HBI states that “…it would take a lot more than a short-term economic slowdown to cause a nationwide real estate market crash in the U.S. … The U.S. housing market is not nearly as ‘fragile’ as it was during the last crash.”
HBI actually credits the regulation and oversight after the last big crash with creating a more stable mortgage industry and therefore a sturdier housing market.
I can tell you from very personal experience that buyers today are far more qualified and prepared for a mortgage than they used to be.
If the government, however, implements large scale “shelter-in-place” or quarantine measures, and people are not out buying homes, home prices could take a hit. The good news is with DFY you are not having to leave the comfort of your home to go and look at properties, meaning you can still evaluate, invest, and act with the help of the DFY team. That means, even if prices take a little hit, with the seller’s market potentially evaporating, it may be one of the best times in recent history to jump in and expand your portfolio according to industry experts.