Are we headed for another market downturn? No, and here’s why.
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Our market has been doing so well for so long that we may be nearing its peak. How will we know once we’ve hit that peak? The truth of the matter is that we won’t know until the market starts to go down again.
“We won’t know we’re at the peak until it has passed.”
Because of this, many people are worried that we could fall into another recession like we had in 2008. However, there are a few key differences between then and now that further explain why we aren’t headed toward a recession. What happened was that many, many people got loans who could not repay them. They really had no business getting a loan in the first place.
Now, lending guidelines are much more strict. Lenders verify income and other documentation and won’t give out 0% down loans to anyone with a pulse like some of them used to. When you couple those stronger guidelines with the strong economy we have here in Seattle, we have much more room for sustainable growth than a place like San Francisco, where the median sale price is $1.1 million.
There are a lot of steps in buying and selling a home, but the only step you need to remember is giving me a call. If you have any questions or need any help buying or selling, I’m always here for you. I look forward to hearing from you soon.