12411 N Pennsylvania Street Suite 300 | Carmel, IN 46032 Each office is independently owned and operated.
REAL ESTATE MARKET REPORT
REBECCA GLAZIER
AUGUST/SEPTEMBER 2020
FOUNDING MEMBER BROKER ASSOCIATE NEIGHBOR
317.289.6601 rebecca.glazier@encoresir.com www.LiveJacksonsGrant.com
Published by REAL Marketing (REM) | www.REALMarketing4You.com | 858.952.4280 | ©2020
COMPARING 2020ARETO 2008 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
12.5%
Source: Black Knight
11.4%
8.5% 8.7%
8.6% 6.5%
4.4%
5.2% 5.5%
6.4% 4.8% 4.7%
The 6 Years Leading up to The Housing Crash
The Last 6 Years
2000 2001 2002 2003 2004 2005
2014 2015 2016 2017 2018 2019
USE OF HOME EQUITY
TOTAL HOME EQUITY CASHED OUT by Refinance in Billions
LIVE JACKSON’S GRANT
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.
Prepared Especially for
JONATHAN-THOMAS AND ANGELA-MARIE WILLIAMS Presented by REBECCA
GLAZIER
Broker Associate | Neighbor JONATHAN-THOMAS AND ANGELA-MARIE, Now is a great time to sell your home! Interest rates are still extremely low, and I employ a number of ways to keep the selling process safe. If you’re ready to talk about these unique opportunities, call me today at 317.289.6601. Source: www.watersongmortgage.com
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