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The Covid Crash: Why this is not like 2008
With the volatility in the stock market and uncertainty about the impact of COVID-19, I’m getting many questions about the health of the real estate market. I want to provide as many facts and expert opinions as possible to help you understand the situation and why we should not compare it to the housing crisis of 2006-2008.
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There’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did in the early 2000s.
Why? Because homeowners have more equity.
In the run-up to the housing bubble, homeowners were using their homes as a personal ATM machine. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. While prices have risen over the last several years, owners have not been tapping into it like the last time. The table shown at right compares the equity withdrawal over the last three years compared to 2005, 2006, and 2007. Homeowners have cashed out over $500 billion dollars less than before.
I’m here to help—feel free to reach out to discuss your own personal situation and I’ll do my best to help you find the answers you need.
— Shaunna Burhop
FOR THE MOST RECENT DATA AND REPORTS, please follow me on Facebook and Instagram at ShaunnaBurhopRealEstate
Shaunna Burhop is one of the top agents in the Chicago Northwest Suburbs, and she has consistently been recognized as one of the Top 10 Real Estate Agents in Illinois and the Top Producing Agent at Baird & Warner NW Suburban.
Virtual appointments now available! Call Shaunna today at 847.275.0277
