Katie McBride | Hopkinton Real Estate, Holliston Real Estate, Ashland Real Estate


In the community of Milford, MA in the past month there have been 16 homes sold.  The average sale price of these homes was $414,562 and the homes were on the market an average of 85 days.  There have been 13 homes listed for sale during the past month in Milford, MA.
 
We are here to serve all your real estate needs in the surrounding communities.  We welcome your business, and we promise to take exceptional care of you or any of your referrals.


In the community of Framingham, MA in the past month there have been 29 homes sold.  The average sale price of these homes was $519,153 and the homes were on the market an average of 61 days.  There have been 28 homes listed for sale during the past month in Framingham, MA.
 
We are here to serve all your real estate needs in the surrounding communities.  We welcome your business, and we promise to take exceptional care of you or any of your referrals.
 


“It’s going to pass. This short-term virus negative impact will pass.” – Dr. Yun

 

In these uncertain times, it’s vital to arm yourself with facts so you can prepare for and deal with any challenges. In this special bonus episode, Brian interviews NAR Chief Economist Dr. Lawrence Yun and gets his take on how the economy and the housing market will be affected by the Coronavirus. Replacing fear with facts, this content will help you navigate this difficult time for our country, our world and specifically our marketplace.

 

YOU WILL LEARN:
• How fluctuations in the economy will impact the real estate market.
• If the Spring selling season will be pushed back into Summer.
• Why the economy and the real estate industry will bounce back.

 

INSPIRATIONAL QUOTES FROM THIS EPISODE:

“We have faced many, many different crises in the past as a country.” – Brian Buffini

“Housing is on very solid ground, yet we are running into this economic quarantine … that is shutting down the economy temporarily.” – Dr. Yun

“The banking industry is in a completely different spot than it was going into the last recession.” – Brian Buffini

“No matter what, this is going to be a shorter-term situation than what we faced with the last recession.” – Brian Buffini

“If it is of short duration, one can anticipate quite a strong real estate rebound after say one or two months of somewhat of a lacklustre activity.” – Dr. Yun

“We had a housing shortage going into this virus situation. And if the duration of this virus negative impact is short … we’ll run into the housing shortage right away again.” – Dr. Yun

“If you don’t sell, you haven’t lost anything.” – Brian Buffini

“In this time of crisis, the one place that people had to go to for their safe haven was their home. Their homes became their shelter, their comfort, their lifeboat.” – Brian Buffini

“If it (the economic shutdown) is of short duration, it will be just a delayed Spring buying season. It could be in August or September when we see that normal Spring buying season occur.” – Dr. Yun

“If there is a short duration Coronavirus impact, then we will see a fairly robust late Summer going into Fall home sales market.” – Dr. Yun

“It’s almost impossible to project at this stage…Data is a rear-view mirror.” – Brian Buffini

“It seems to me that, as we get ready, there will be a pent-up demand.” – Brian Buffini

“It seems like the real estate business as a huge sector of the economy is actually poised to still perform pretty well.” – Brian Buffini

“Housing is on very solid ground if we were to go into a recession.” – Dr. Yun

“Real estate is always going to be this safe haven where people are putting their investment.” – Brian Buffini

“In many ways, we’re well set up for this crisis on a major level.” – Brian Buffini

“The fact that we are in a very accommodating monetary policy means mortgage rates will be at historic lows. The most recent data shows about 3.3 percent. It could even go down to 3 percent.” – Dr. Yun

“Half of Americans don’t have any exposure to the stock market, so they’re just looking at the low mortgage rates.” – Dr. Yun

“Once the all-clear signal is addressed to say the virus situation is over, I think we’re going to see a great robust rebound in people searching for homes.” – Dr. Yun

“People need to be reminded to be resourceful.” – Dr. Yun

“Stay at home, but if you’re staying at home, how can you be resourceful?” – Dr. Yun

“I would like to see more home building activity come onto the market once we go past this crisis.” – Dr. Yun

“If one feels that their job is secure, and many jobs are…take advantage of the record-low mortgage rates” – Dr. Yun

“Maybe there are less buyers out in the market during the crisis, which means there’s less competition and better price negotiation potential.” – Dr. Yun

“Right now, home is the only safe place that you know you have.” – Brian Buffini

“There will be more people working at home…so we may actually begin to see more people wanting to search for different homes to fit their lifestyle a little better.” – Dr. Yun

“The housing market has a huge potential for growth.” – Dr. Yun

“Over the next five years, probably four of those five years will be an improving year.” – Dr. Yun

“People who are planning for the future long term in real estate, they will do well.” – Dr. Yun

“When you have a bit of a longer-term perspective, it seems to take you out of the short-term panic.” – Brian Buffini

“The sky is not falling. This is a difficult time. In many ways, this could be our finest hour.” – Brian Buffini

“It’s going to pass. This short-term virus negative impact will pass.” – Dr. Yun

“Even if it takes a little longer to contain it, there is such a solid fundamental for the real estate market, things will play out very well over the long haul.” – Dr. Yun

interview from: https://www.thebrianbuffinishow.com/this-too-shall-pass-an-interview-with-dr-lawrence-yun/


In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.

1. The Market Today Is Vastly Different from 2008

We all remember 2008. This is not 2008. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, excessive equity-tapping, and more – we’re not where we were 12 years ago. None of those factors are in play today. Rest assured, housing is not a catalyst that could spiral us back to that time or place.

According to Danielle Hale, Chief Economist at Realtor.com, if there is a recession:

“It will be different than the Great Recession. Things unraveled pretty quickly, and then the recovery was pretty slow. I would expect this to be milder. There’s no dysfunction in the banking system, we don’t have many households who are overleveraged with their mortgage payments and are potentially in trouble.”

In addition, the Goldman Sachs GDP Forecast released this week indicates that although there is no growth anticipated immediately, gains are forecasted heading into the second half of this year and getting even stronger in early 2021.Three Reasons Why This Is Not a Housing Crisis | Simplifying The MarketBoth of these expert sources indicate this is a momentary event in time, not a collapse of the financial industry. It is a drop that will rebound quickly, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years. Although it poses plenty of near-term financial challenges, a potential recession this year is not a repeat of the long-term housing market crash we remember all too well.

2. A Recession Does Not Equal a Housing Crisis

Next, take a look at the past five recessions in U.S. history. Home values actually appreciated in three of them. It is true that they sank by almost 20% during the last recession, but as we’ve identified above, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6% (see below):Three Reasons Why This Is Not a Housing Crisis | Simplifying The Market

3. We Can Be Confident About What We Know

Concerns about the global impact COVID-19 will have on the economy are real. And they’re scary, as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.

According to Bloomberg,

“Several economists made clear that the extent of the economic wreckage will depend on factors such as how long the virus lasts, whether governments will loosen fiscal policy enough and can markets avoid freezing up.”

That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.

The reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. As noted in a recent piece in the New York Times, “Everyone needs someplace to live.” That won’t change.

Bottom Line

Concerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, let’s connect to discuss your needs.


In the community of Bellingham, MA in the past month there have been 14 homes sold.  The average sale price of these homes was $445,012 and the homes were on the market an average of 55 days.  There have been 10 homes listed for sale during the past month in Bellingham, MA.
 
We are here to serve all your real estate needs in the surrounding communities.  We welcome your business, and we promise to take exceptional care of you or any of your referrals.




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