RE/MAX DFW Associates VI 11955 Dallas Parkway #300 Frisco, TX 75033
469-582-0282
T he H omestead at C arrollton
Each office independently owned and operated
C ynthia F owler
RE/MAX Hall of Fame REALTOR®, ABR, SRS, SFR, I.R.E.S RE/MAX DFW Associates VI
214-803-3452
CynthiaFowler@remax.net www.TheHomesteadHomes.com
COMPARING 2020 TO 2008
ARE THEY DIFFERENT ?
COVID-19 has had a large effect on the economy – so much so that you might have heard talks of our country entering another recession. Due to the severity of the 2008 financial crisis and the ensuing recession, the term stirs up a lot of emotions for many, especially when it comes to the real estate market.
Inventory and Appreciation
Annual Home Price Appreciation
In the years leading up to the housing market crash, home price appreciation (the increase in value of houses) was out of control. Homes simply became too expensive for buyers to afford, which became a contributing factor to the crash. The price of homes is still high today, but it’s risen at a more stable level. Inventory is at a low in most markets, causing a surge in demand.
by Refinance in Billions
Now...
Source: Freddie Mac
11.4% 8.6%
8.5%
8.7%
6.5% 4.4%
The 6 Years Leading up to The Housing Crash 2000
2001
2002
2003
2004
2005
5.2%
5.5%
6.4% 4.8%
4.7%
The Last 6 Years 2014
2015
2016
2017
2018
2019
Use of Home Equity
Total Home Equity Cashed Out Then...
Source: Black Knight
12.5%
Year
Dollars
Year
Dollars
2005
$263B
2017
$71B
2006
$321B
2018
$87B
2007
$240B
2019
$89B
Total
$824B
Total
$247B
Prior to the housing crisis, many homeowners were using cash-out refinances to supplement their cash flow, meaning they were tapping into their home’s equity as soon as it built up enough rather than letting it grow and build their overall wealth. This put many homeowners in a negative equity position when the housing bubble burst; they owed more on their home than it was actually worth.
R eal E state M arket R eport | S eptember 2020
Prepared Especially for Jonathan-Thomas and Angela-Marie Washington Presented by Cynthia Fowler
Jonathan-Thomas and Angela-Marie, Now is a great time to sell your home! Home inventory levels have dropped and because interest rates are still so extremely low, buyers can afford more home for their buying dollar. I also employ a number of ways to keep you and your family and the selling process safe. If you’re ready to talk about these unique opportunities, please call me today at 214-803-3452 Source: www.watersongmortgage.com
RE/MAX DFW Associates VI The Homestead’s Top-Producing Agent RE/MAX Hall of Fame D Magazine - 2019 Top Producer