Are we headed for another crash? Today I’ve brought on a special guest to discuss this crucial question.
Today I’m joined by John L. Scott Real Estate’s director of business development, James Colburn, who will be answering a few questions about our market and how it’s faring on a corporate level.
The first thing I wanted to know was whether our market is about to crash. There have been some rumors that we’re in for a repeat of what we saw in 2007, so I wanted to ask James whether he thinks this is set to come true.
According to James, the primary difference between today’s market and what we saw back then is that buyers must now be truly qualified before making a home purchase. Back in 2007, almost anyone could get qualified. James was involved in new construction at the time, and remembers the builder he worked with saying, “Someone’s going to pay for this.”
And this builder was right, because as James put it, “Everyone ended up paying.”
However, things since the Great Recession have changed. Instead of a crash, we’re simply on our way toward a natural correction. These kinds of corrections tend to happen every decade on the decade. So in a couple of years, we can expect one to occur.
Depending on the price range, premium pricing will likely experience a 5% to 10% dip. Following that, we can expect a 30% to 40% increase over the next decade. If anything, this correction will look a lot like a buyer’s market. And after the nine months or so that it will last, things will take off once more.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.