Even though the country is seeing record inflation rates, it may be surprising to learn that we’re not facing another housing bubble. Admittedly, the economy is similar to the economy of 2008 in some ways. However, there are key factors that are keeping us from falling into that same type of housing crisis.
1. Lending Standards for Homes in Asheville, North Carolina, Have Changed
Prior to the housing bubble of 2008, lenders made it easier for people to buy homes by offering low or no down payment options. While these incentives helped buyers get into their new homes, they made it more difficult for those buyers to keep their homes.
Lower down payments meant borrowing more money and paying more in interest. As the economy entered a recession, those home buyers could no longer meet demanding mortgage repayment schedules. As a result, lenders had to foreclose on a significantly high number of homes.
Today, lenders are taking greater care in qualifying home buyers for mortgages. They’re requiring 30% down and instituting stricter screening processes for potential buyers. While this means real estate agents can sell to fewer buyers, it also means those that do qualify will be better prepared to repay their loans.
2. We’re in the Midst of a Labor Shortage
One thing that has been good for our economy is the labor shortage. Since there are more job openings than there are job seekers, employers are competing for candidates. This is forcing businesses to increase the wages they pay and providing incentives for more people to return to work.
The introduction of remote work has also benefited this situation. Since people can pick up gig jobs or start freelancing, they can make extra income on a flexible basis.
Additionally, people who solely work from home may be looking to upgrade their living situations. When they are ready to buy homes, they will be looking for larger homes that can accommodate home offices.
The availability of employment has been especially beneficial for people who want to buy homes in Asheville, North Carolina. They can pick up better-paying jobs or extra employment to help them save for their real estate purchase.
The continued demand for real estate as a result of the changing workforce has helped to circumvent the potential for a new housing bubble.
You can monitor the situation with the real estate market in your area if you’re interested in getting a good deal on a new home. Keep in touch with your real estate agent and watch the listings for homes in your community. These resources can teach you how to read the fluctuations in the market so you can make better home-buying choices.