Property values in Basking Ridge are not going down because we are in a recession. Property values are not declining. Full stop. They just aren’t appreciating as quickly has they have been since March, 2020; that kind of growth is unsustainable – the market is adjusting back to normal. Inventory levels of 3-5 months – still favoring sellers, but no longer suffocating buyers.
The real estate market is on just about everyone’s mind these days. That’s because the unsustainable market of the past two years is behind us, and the difference is being felt. The question now is, just how financially strong are homeowners throughout the country? Mortgage debt grew beyond 10 trillion dollars over the past year, and many called that a troubling sign when it happened for the first time in history.
Homeowners today have more financial strength than they have had since 1983. This is a combination of how homeowners have handled equity since the crash and rising home prices of the last two years. And this is yet another reason homeownership in any market makes sense. The real estate market is on just about everyone’s mind these days. That’s because the unsustainable market of the past two years is behind us, and the difference is being felt. The question now is, just how financially strong are homeowners throughout the country?
This is yet another reason we won’t see the housing market crash. Home equity allows homeowners to be in control. For example, if someone did need to sell their home, they likely have the equity they need to be able to sell it and still put money in their pocket. This was not the case back in 2008, when many owed more on their homes than they were worth.
Bottom Line
Homeowners today have more financial strength than they have had since 1983. This is a combination of how homeowners have handled equity since the crash and rising home prices of the last two years. And this is yet another reason homeownership in any market makes sense.
0:00 Intro – It’s going to be ok!
0:19 Current Homeowners & Buyers Listen Up!
0:40 The Last 2 Years
1:10 Homeowner Equity vs Debt
2:00 LTV: Loan to Value Ratio
2:37 All Time High Home Equity
3:50 Understanding LTV
4:14 Bottom Line
4:40 Don’t Forget to Subscribe!
5:08 Blooper 🙂
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Jennifer Blanchard Team
Berkshire Hathaway HomeServices NJ Properties
