SEPTEMBER 2020
RE/MAX Integrity | 19510 Kuykendahl Road Spring, TX 77379 | 281-370-5100
REAL ESTATE
Auburn Lakes www.AuburnLakesLiving.com
MARKET REPORT
713-557-7095
REALTORS® and NEIGHBORS
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.
Then...
Source: Freddie Mac
Source: Black Knight
11.4%
8.5% 8.7%
8.6% 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
PREPARED ESPECIALLY FOR
Johnathan and Angela-Marie Williams
Use of Home Equity
Total Home Equity Cashed Out by Refinance in Billions
12.5%
Now...
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.
Johnathan and Angela-Marie, Now is a great time to sell your home! Interest rates are still extremely low, and we employ a number of ways to keep the selling process safe. If you’re ready to talk about these unique opportunities, call us today at 713-557-7095. Source: www.watersongmortgage.com
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