The housing market can often be a fickle thing, and many individuals worry about the possibility of a housing crash in the near future in Mullica Hill, NJ. If a housing crash occurred, it would mean that prices for homes would decline significantly and there would be a serious loss in value of their assets.
If you happen to find yourself in need of selling your house in Mullica Hill during a real estate market downturn or crash, the reduced worth of your most valuable asset can be detrimental to your profit. Obviously, no homeowner wants to even consider that possibility.
At Your Home Sold Guaranteed Realty - Nancy Kowalik Group, our team is here to tell you that there is good news for homeowners considering selling their properties. There are strategies you can use to prepare yourself and your home if a housing crash were to occur sometime in the near future. In fact, a softening of the market does appear to be inevitable, and the only question is how serious it will be.
Over the last few years, inflation has increased to the highest levels we have seen in decades. Specifically, 9.1% CPI over the summer created a 40-year-high. Fewer and fewer people are able to purchase a home, and even those who can afford it are reconsidering their investment because of the poor circumstances.
Housing Market Crash Explained
It is important to ensure that you understand what exactly a housing market crash is before we start getting into the specifics of creating a solid plan to protect your assets. Most homeowners know that a housing crash can be catastrophic, but they are usually unaware of the specifics.
Let’s start with a housing bubble, or a real estate bubble. This occurs when prices for real estate rise well above their true worth as a natural correction to a significant reduction in prices. In general, it will lead to a natural correction that will reduce prices again. They come down fast when it does happen.
Why do prices increase in the first place? Several reasons, including:
- High demand
- Decreased supply
- Low interest rates
On some occasions, though, prices rise artificially when interest rates are extremely low for borrowing. More people get mortgages because there are fewer credit standards. While this seems like a positive thing, it can be the cause of a housing crash.
However, high prices do not always mean a housing crash is on the horizon. It is only when the real estate bubble bursts that prices fall dramatically enough to result in a crash. When the bubble does pop, all mortgage holders are affected.
It is also worth acknowledging that a housing crash in one location does not equate to a crash everywhere. They are not universal in nature. Local, state, and national markets can all have their own housing crashes. Take, for example, the housing bubble of 2008. With some housing crashes, you may also find yourself in a recession, but they are not always universally connected either.
What Exactly Is the 2008 Housing Bubble?
The housing bubble in 2008, which led to the Great Recession in the same year, occurred after a serious housing boom throughout the early 2000s. Prices were at their highest in 2006 but began to rapidly decline. By December 2008, the Case–Shiller home price index recorded the largest price drop in its history.
As expected, this caused many homeowners to be unable to pay their mortgages. Some were also left with homes that were reduced in value so that they were in a negative-equity position (homes were worth less than the mortgage).
With a rise in interest rates, homeowners couldn’t afford their monthly payments which left banks and lenders liable for mortgages. This led to a credit crisis resulting in foreclosures and the eventual recession.
Will There Be a Housing Crash in Mullica Hill?
As many homeowners have become well-aware of, the housing market has been quite hot in recent years. Conditions as of late, however, have started to lean toward a recessionary state with high inflation and increased interest rates. This has many wondering if the nation is heading toward a crash.
Hot Market vs Housing Bubble
In order to answer the question of whether a housing crash is inevitable, we must first make the distinction between a hot market and a housing bubble. Bubbles, like the one in 2008, are actually pretty rare and can be defined by unsustainable growth in housing prices and low mortgage rates. Conversely, a hot market is a much more common occurrence and is influenced by local market conditions as well as the economic concept of supply and demand for that area.
No one can predict an oncoming housing crash with 100% certainty, experts in the real estate industry all seem to agree that we are not heading in the direction of a crash. Demand continues to be high, supply low, home buyers are creditworthy, and lenders are using stricter requirements for their lending.
While high interest rates may reduce housing prices or cause a plateau in prices, that does not indicate that a sharp crash is imminent.
What Is an iBuyer and How Does It Affect the Housing Market?
iBuyers must also be considered when selling your house during a housing crash. What are iBuyers? In short, iBuyers are companies that buy homes as-is from the home sellers. The homeowners do not need to fix anything in the home, prepare it to be sold, list it, market it, or deal with a realtor. iBuyers make the home selling process incredibly simple because they make cash offers.
These buyers use a specific algorithm to ensure the price they are paying will net them a profit once they repair the home and resell it. Even though they are relatively new to the real estate industry, iBuyers can seriously influence a local market because they are able to flip and sell homes for prices that other home sellers cannot compete with. This severely affects prices of the local market.
When there is an iBuyer affecting your local market, it is important to discuss your home selling goals with an experienced realtor who can help you determine when and how to sell a house fast and for top dollar, even in a housing crash in Mullica Hill.
Information to Be Aware to Ensure Your House for Sale Is Prepared for a Housing Crash
Get the Asking Price Right
No matter what the housing market looks like, it is important to know the value of your home in the current market so that you can price it correctly. With the right asking price, you can ensure that your home will sell fast and get you top dollar. In a housing crash in Mullica Hill, you may have to end up reducing your price lower than you may have needed to before the rise in interest rates.
If your price is too high, it will likely scare away potential home buyers. They are all looking for the cheapest deals on a house because the mortgage rates have increased so much. Pricing it too low, however, may lead to missed profits.
If you work with an experienced and knowledgeable realtor such as ours at Your Home Sold Guaranteed Realty - Nancy Kowalik Group, you can guarantee that your home will be priced to sell properly. We will come up with an individualized pricing strategy for your property using our knowledge of the area and the pattern of home prices in your region. Our realtors ensure that iBuyers and algorithms can’t keep up with our strategies.
Ensure Your Home Is Ready for Someone to Move in Right Away
A second way to ensure your home is prepared to sell during a housing crash is to get it in move-in ready condition. Home buyers do not want to invest in a home that still needs repairs or renovations, especially during tough economic conditions.
When you invest in your home prior to selling it, you can ensure that it will sell more quickly, especially if other homes are not in move-in ready condition. You should consider doing the following:
- Get a pre-inspection
- Make necessary repairs
- Hire a professional cleaning service
- Buy neutral furniture, decor, and paint
- Talk to a realtor for more specific tasks to complete
When you take these steps, you can rest easier knowing that your home will be attractive to home buyers.
Timing Is Everything
As you might expect, selling a home during a housing crisis can be challenging and tricky. It is obviously better to sell a home before a housing crash in Mullica Hill because lower housing prices will all but ensure you sell for less than you paid.
If possible, our realtors at Your Home Sold Guaranteed Realty - Nancy Kowalik Group would advise you to wait until the market improves. If, however, you need to sell immediately, be sure you contact our experienced team. We can tell you how long to wait to make sure housing prices do not fall even lower.
In the real estate industry, timing is everything!
Would You Also Need to Buy a Home During a Housing Crash in Mullica Hill
If you are buying and selling simultaneously, a housing crash may not be as detrimental for you as you might expect. Your goal should be to buy low and sell high – just like in the stock market. When you sell a home at a lower price due to the housing crash, that means you will also be able to buy one at a lower price.
Once the economy recovers, your equity will grow and you can eventually sell this new home (if you want to) at a higher price than your original purchase price. Essentially, you may be able to come out in the green!
We Will Sell Your Home Even During a Housing Crash in Mullica Hill
Are you thinking of selling your home during a housing crash in Mullica Hill, NJ? You will need a great local solution. With our team at Your Home Sold Guaranteed Realty - Nancy Kowalik Group, we can ensure that you will not have to worry about the many issues that other home sellers are concerned about. We offer customized and exceptional services as well as unparalleled guarantees to our clients, and that separates us from other realtors in Mullica Hill.
With our knowledge of the local housing market, we have helped many other families throughout New Jersey, and we are committed to assisting you as well. We want you to be able to have a great home selling experience, even in a housing crisis.
And thanks to our Guaranteed Sale Program, Nancy and her team can GUARANTEE that your home will sell for an agreed upon price and within a specific time frame. If it doesn’t, Nancy will buy it herself!
Nancy Kowalik Will Sell Your Home Quickly, Even in a Down Market
When it comes to selling a house fast in a housing crash in Mullica Hill or any other problematic housing situation, you need to rely on the assistance of an experienced realtor such as ours at Your Home Sold Guaranteed Realty - Nancy Kowalik Group. Home sellers need not lose hope of selling their homes – our team will help.
We will use our experience and knowledge to help you make smart decisions for listing your home and marketing it properly. The asking price will be correct, and you will have our team ensuring that your home does not suffer due to tough economic conditions. When you want real estate success, trust the experts!
If you want more information, feel free to give us a call at (856) 478-6562 or fill out the form below with the requested information. We look forward to hearing from you!