Here are 3 major reasons why the housing market is not likely to crash.

Here are 3 major reasons why the housing market is not likely to crash.

What do you think? Will this real estate market be going to crash? I don't think so. And I got 3 different reasons. And that proves that most likely this market is not going to crash. Welcome to Real Estate Tips for South Florida 

Reason number one is the solid underwriting process. Last few years, the lenders and their underwriters are doing a very quality job when they're underwriting these loans. By checking the income, the history of the income. They're checking the strength of the job the buyer or the borrower has. And definitely the credit score  and also the money they need for the down payment and the closing cost. So these are the things they're checking and the more things they're checking also, a lot of different histories of the borrower and it made those loans, actually the borrowers against the loan are very strong. And because of that strong underwriting process, there are least likely these people are going to face foreclosure or any kind of downfall to the market will happen.

And reason number two is currently, the sellers are not forced to sell. The reason this time at the end of 2022, sellers are selling because they have a good amount of equity. So they're in a better place to make a decision to buy their dream home or maybe downsize and get rid of the mortgage, and buy something for cash. So this is something they're doing with a plan. They are not forced to sell like back in 2008 when people were facing foreclosure. So the seller has a choice, either sell the home or not sell that home.

And reason number three, the inventory is historically low. And because of that reason, there are many buyers and the buyers are moving from other cities, from out of the country, different countries, and there's a lot of flow of buyers, especially in South Florida. And then low inventory makes this real estate market strong and is least likely to crash or the prices go down.

Make a comment, and let me know, what do you think? My name is Shawn Bhakta from Remax Presidential South Florida Home Finder Team and also a Tom Ferry Coach. And I'm glad to help.

Top real estate services in Pembroke Pines, Florida and surrounding area. 701 Promenade Drive, Suite 230, Pembroke Pines, FL 33026. Search properties at: Check home value at: 

Post a Comment