Here’s our review of the last decade in real estate, covering the years between 2010 and 2019.
Some people have called the years between 2010 and 2019 the Redemption Decade, which seems fitting; after all, we did rebound from the destruction of the Great Recession of 2007, 2008, and 2009.
By all accounts, these last 10 years were an amazing decade for real estate. Homeowners saw prices go from the bottom of the market in 2010 back up to the peak prices we saw in 2006 for the last few years. It’s been so great that many people you know might have become real estate agents since then.
So what factors caused our market to rebound, and where are we headed in the coming decade? I broke them down into three primary factors:
1. Supply and demand. Buyers and sellers saw low inventory between the investors and the hedge fund groups who bought up all the foreclosures and short sales in bulk from 2009 to 2011. This left the market with a scarce supply of homes.
2. Low interest rates. Rates went down into the lower threes and for a short time, money became incredibly cheap to borrow on a home loan.
3. Economic improvement. People began to make more money and their confidence increased to the point where we had more buyers coming into the market than we had homes available. As a result, market prices went up until August of 2018.
It was in August 2018 that we saw the market change: Interest rates went into the high fours and low fives, sales flatlined, inventory started to rise, and price corrections were rampant. These trends lasted for about a year and a half in select cities and price points.
Now that we’re here in 2020, people have been wondering whether home prices will go down as they did in 2008.
In short, no—that’s all fake news. The truth is that after 2009’s mortgage meltdown, banks became very tight with their guidelines regarding who could qualify for a loan. Those changes were so tight that we won’t see a significant downward trend in home prices at this time. The lion’s share of the homes bought in the last 10 years were purchased with significant money down, very conservative loan programs, and more homeowners today have a more serious equity position in their homes than they have over the last decade.
Here’s the icing on the cake: Interest rates are currently back down to around 3%, and buyers now have 10% to 12% more buying power than they did just a year and a half ago.
Whether you need to sell or buy, 2020 is shaping up to be a stellar year for everyone in real estate. We helped a huge number of families buy, sell, upgrade, and move over the past decade, ultimately helping them enjoy a better quality of life through real estate. Our goal is to continue that tradition in the coming decade, as well.
If you’re thinking about selling your home, there’s no one better than us to help you get it done. We have the marketing strategy, expertise, and knowledge to not only sell your home but also to get you a lot more money than the average Realtor could. Don’t hesitate to give us a call, shoot a text, or send an email. Let’s grab a cup of coffee and decide together what the best plan for you will be moving forward in 2020.