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Think piece: How it's different now for homes and real estate

Faced with the economic uncertainty caused by COVID-19, it is important to look at historical data to understand why today’s situation is extremely different than anything we have experienced before. There is much that remains unknown. While the financial market’s moves in response to the coronavirus outbreak have been reminiscent of the global financial crisis, today’s situation is extremely different. This is different than 2008. This is a health crisis, not a financial crisis.  Housing played a key role in causing the recession that occurred in 2008. According to the Financial Post, “Debt was at the centre of the issue in 2008 as banks, without restraint, offered subprime mortgages to countless Americans who were in no position to take them on. The banks doubled down by packaging them into mortgage-backed securities to sell to other institutions. After the housing bubble burst and Americans could no longer pay mortgages, the banks were left holding the bag.” Today’s market is not the result of the structural collapse of a financial system, but rather a time-limited health crisis we will overcome. We expect that North Texas will be in just as much demand — if not more, because of our wide-open spaces and bigger homes — than it was before this began. This is important point to keep in mind, as it is highly probable that when this passes, the economy will recover over time. Recession does not equal housing crisis. From a historical perspective, of the last five recessions in U.S. history, three of them saw increases in housing prices. Two of those three saw prices appreciate faster than the historical average. There are opportunities now. There are buyers and sellers in every market. With the Fed reducing rates to stimulate the economy and the government pouring money into the economy to help offset the losing of jobs and closing of businesses, there could be a strong rebound and inflationary pressure when the coronavirus has run its course. The business of real estate continues to move forward. Briggs Freeman Sotheby’s International Realty has its agents and staff working virtually and safely, and we have technologies in place to support our clients through the entire transaction process. We always have, and now we are accomplishing even more, remotely. From exploring your favorite homes via videos and virtual tours to signing for your new one securely, the pairing of technology with the skills and smarts of your Briggs Freeman Sotheby’s International Realty agent is an unbeatable combination on your side — now and anytime. Top of post: An investment in quality: 4300 Armstrong Parkway in Highland Park, represented by Penny Cook.  

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