Housing Market Update 2019. Is it a right time to sell or buy?
– Hello everyone.
Ady Simion, Coldwell Banker. Today I wanna give you a little bit of a market update. The home prices have been appreciating for the past 10 years at a very high rate. Now we’re going into a little bit of a slower appreciation. We’re still appreciating but
at a normal rate of about 3.6% going into 2020, so
prices are still going up but are going up at a slower rate. 3.6% in average, so that’s
normal for the market. This is becoming a normal market. Secondly, the rates have been for the past 30 years an average of 8.7%. Now are around 3.8% 4%, somewhere around there, depending on your credit. Rates are really really low,
it’s a great time to buy. Another thing that
everybody is talking about, is talking about a recession coming in the next year or so, next 18 months. When people are talking about recession a lot of people are thinking
house crash, housing crash because in 2008 the housing really crashed. But you need to remember that last recession was
caused by the housing. The next recession is not
gonna be caused by housing so we not necessarily have to have a crash on the housing market. If you remember, for the
past five recessions, in 1980 the houses appreciated about 6%. In the 1981 recession, the
houses still appreciated at a rate of about 3.5%. In 1991 recession, the houses dropped, the houses depreciated around 2%. In the 2001 recession, the
houses still appreciated at a rate of about 6.5%. But in 2008, that’s when
the biggest drop was, houses did depreciate by almost 20%. So everybody is afraid
that the next recession is gonna be the same. It’s not going to be the same because it does not have the ingredients
of the last recession. The last recession was caused by housing, the next one will not be. It’s a complete different situation. So, that’s the market update. Rates really low, recession is
not gonna affect the housing very much, that’s what has been predicted, and the house prices
are still appreciating. It’s good time to buy, you
should go ahead and do it. Any questions, please give me a call. Ady Simion, Coldwell Banker. Talk to you all soon, please don’t forget to subscribe to my channel, like my page, follow me in Instragram. Thank you very much, bye bye.