We keep hearing the phrase “worst since “2008,” in reference to the stock market falling and economic indicators — the sign of peril facing the world economy due to coronavirus.
This actually raises the question: Will this pandemic crisis be similar to the economic woes we experienced in 2008? The truth is, the situations are extremely different.
In 2008, a banking crisis and the loss of housing wealth was the root of the problem. Today, the problem is direct losses of income for people and businesses that has occurred through a virus that our country has encountered in the past. This occurred through no fault of the good people of the world. We may never know the cause of this catastrophe, however, Americans are resilient.
The stock market isn’t typically tied to the housing industry. The housing market is a basic need. Buying a home is usually driven by people’s needs: Newly married couples needing a home to live in, the arrival of a new baby, and the need for more space, Children leave home and the couple downsizes. A recession will not change the needs of people. Often, when the stock market drops, people look for another avenue to invest their money. Real estate is tangible and many times a good place to park their wealth. The housing market is incredibly durable.
But, let’s talk about the area that we live in, the beautiful Lake Country. The real estate market here, cannot be compared to the real estate market in any other state. This area is unique. We have captured the interest of all age groups and walks of life. We were fortunate to see firsthand the growth and changes in our area. Twenty-five years ago, we as Realtors were helping our clients purchase lots to build their homes on. There were very few homes to buy. They purchased land and they built their beautiful homes with the expectations of enjoying them with their families. We are now seeing many of those same people thinking of selling and moving on to another phase in their lives. Some are down-sizing and are staying in the area. This turnover brings about buyers and attracting new buyers who will experience the same joy of living in our area.
Since the beginning of the virus, we have seen the real estate market stay strong through virtual tours. Could this be the thing of the future in real estate. Yes, it is very convenient, but we personally think that the real estate business is a relationship, not just a transaction. Communication helps us get to know our client and help them through the selling or buying process.
No one can ever predict what the future will bring, however, we are optimistic that we are very blessed to live in one of the most unparalleled, unequaled places in our country. The area offers some of the most prestigious golf communities in the country and beautiful lakes and countryside.
If you are thinking of buying or selling a home, this is a good time to give it a try. Agents are using the right protocol for your protection. This week we were asked to submit two offers on homes and both had offers on the table. Great news. Yes!!! People are buying and selling.
SAY YOUR PRAYERS & STAY OPTIMISTIC!
Thought for the Day: Let today be the start of something new.