These are my thoughts on a potential repeat of 2006 with today’s market.
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A common expression we’ve been hearing about this market is, “It’s like 2006 all over again.” We have little to no inventory and sellers are raising their prices with every new home that is listed and sold. Is our market going to crash like it did back then?
There’s one major difference between 2006 and 2021: the level of distress. We’re not seeing the same type of loans that would lead to foreclosures and short sales as we did then. The president has not yet lifted the moratorium on foreclosures, but we don’t have the predatory lending now that we did in 2004 and 2005. There are much stricter regulations in place and I highly doubt we’ll see the same level of foreclosures. Additionally, there is more cash in the market today than ever so the number of homes sold with mortgages is considerably less than in 2005.
"It’s certainly the best time to
sell your home since 2006."
This means prices are less likely to drop and crash like we saw in 2007, 2008, and 2009. I think we’re in a much more stable market. Interest rates are low, but that won’t last forever. They’ve risen several times in the last few months, and we are projected to see an increase by the end of the year. If you’re buying within the next 12 months, there won’t be a better time than today. If you’re a seller, we’re still seeing huge demand, so it’s also the best time to sell your home or condo since 2006.
Curious about what your home could sell for in today's market? I am happy to provide an updated market evaluation—it is likely considerably more than you think! If you have any questions, call or text today at (239) 248-8000. I’d love to help you.