The entire globe is amid the pandemic crisis that has brought businesses to a halt. The real estate and stock market are some of the few sectors which have turned volatile than never before. Real estate firms and agencies providing we buy houses Virginia services are continually being asked if the housing market will witness another crash like the one in 2008.
In 2008, when the housing market crashed, property prices began to fall. Many sellers were in negative equity. Meaning, they had more to pay as a mortgage loan as compared to what they were getting for their property. While a few homeowners put their property at discounted rates on the market, which led to short sales, foreclosures. It also depreciated the values of the properties in that area.
Luckily, looking at the current real estate market today, it would be safe to say that there will no real estate market crash due to COVID-19.
Here are a few reasons why.
- The mortgage standards are different today:
Earlier, getting a mortgage for house buying was not difficult. But it’s not the case today. One has to qualify to get a mortgage. This is a Mortgage Credit Availability Index in …