Considering everything that’s happening with the COVID-19 pandemic, now is an uncertain time in the world, but the real estate market is moving ahead. To be clear, this market is not like the one we saw back in 2008 that led to the Great Recession, and there are several reasons why. 

1. Mortgage standards aren’t the same. In 2008, mortgage standards were very loose. Anyone could get a loan. You could have bad credit, you did not have to prove your income and appraisals were super high. After the market crashed, the lesson was learned, and mortgage standards were tightened. Now you need good credit and solid, provable income, and appraisals aren’t coming in high anymore. 

2. Prices are in control. Housing prices have been rising steadily in San Antonio and across the nation but not at the rate that they were in 2008. Back then, prices were skyrocketing and investors from California were swooping in and buying entire neighborhoods sight unseen because they could get them cheaply (even though they were so expensive for regular consumers).

3. 2008 had too much inventory. In other words, there were too many houses on the market, but that’s not the case today. We’ve been pretty consistent inventory-wise. Each month we may have about 7,500 houses for sale, but only about 2,500 to 3,500 are selling, and those numbers stay the same even as we enter April 2020. 

“The point is, people are still buying and selling.”

4. People have more equity in their homes now. In 2008, many people were buying homes with crazy loans and found themselves upside down on their mortgages. When those people couldn’t afford to sell, they went into foreclosure, which exacerbated the problem. People are being wiser with their home purchases, though, and that’s resulted in a general increase in equity. 

5. Sales continue. Even with the stay-at-home order in place, the week prior to the recording of this video saw the following stats:

  • 1,501 new listings
  • 969 houses went under contract
  • 758 houses sold

Even stranger, in the 24 hours prior to this video, there were 364 new listings and 220 homes that went under contract. 

The point is, people are still buying and selling. We’ve attended meetings, coordinated home equity assessments, and held home buying appointments all on virtual platforms. If you want to buy now, we can grant you a virtual showing and spotlight every inch of a property. We also offer 24-hour open houses featuring detailed walk-throughs. There’s no sense in waiting a few weeks—the market is taking off now. 

If you have questions about this or any other real estate topic, don’t hesitate to reach out to me. I’m here to help, and I hope you and your family are staying safe during this time.