According to a recent article on Keeping Current Matters, many experts have weighed in and agree: we’re not headed for another crisis. The housing crisis of 2006-2008 was caused by poor lending practices which have since been cleaned up, and the financial turmoil present 10 years ago does not factor into today’s real estate market.
While median home prices have been steadily increasing this year, and a good many of the nation’s metropolitan areas experiencing record appreciation, it’s only natural to be concerned about another possible recession a decade after the biggest housing collapse in America’s history. We will most likely experience a shift from the rapid growth and appreciation that we are currently experiencing as the market corrects itself, but it won’t be a “burst”. Locally, we have never experienced a burst and although some buyers were unfortunately encouraged to overpay, our personal belief is that most local homeowners should not be affected by a bigger national shift.
Is it the right time for you to buy? It’s a personal issue we can’t answer for you. Start by thinking about these questions: Am I comfortable with a mortgage payment? Would I still be okay with the payment if the market did correct in the future? Contact us with any other questions that come up!