Get Ready: Will Harford County's Real Estate Boom Burst In April 2024?
Are you putting off buying a home because you heard the real estate market is going to crash in Harford County, Maryland? Watch this video as we debunk the myths surrounding a potential market crash. Gain valuable insights and practical tips to navigate uncertain times and ensure your financial stability.
In today's uncertain times, it's natural to wonder about the stability of the real estate market. But let me reassure you—with current trends pointing towards a flourishing market, the possibility of a crash seems less likely. Here's why.
Supply and Demand
Firstly, the imbalance between housing supply and demand is a key factor driving prices upward. With too few homes on the market and a surplus of eager buyers, prices are climbing steadily. With home prices rising consistently for the past couple of years, I feel like people are thinking back to the foreclosure crisis and trying to compare it to the current market. The foreclosure crisis and today are certainly not the same. Back then the high home price costs were caused by faulty and fraudulent lending practices where home values were being fabricated behind closed doors. Unlike the past, today's market is characterized by genuine demand and responsible lending practices, minimizing the risk of a crash.
However, it's essential to be proactive in safeguarding your investment. If there is one thing real estate does, it has ups and downs. Just like any investment you make. So if you are concerned about yourself and your home if the market ever crashes again, there are a couple of ways you can safeguard yourself.
Number 1:
Make sure you are in a fixed-rate loan.
Number 2:
Purchase a home that you can add equity to. It could be cosmetic updates, adding a bathroom, adding a garage, finishing a basement, etc. If you have equity in your home you won’t be underwater to sell it.
Number 3:
Have an emergency fund saved at all times. This goes before you buy the house and after. This can safeguard you against not only any issues that come up but can give you financial comfort if you lose your job or another source of income.
Number 4:
Avoid overextending yourself financially. Budget carefully before purchasing a home, ensuring you can comfortably meet your obligations and save for the future. Remember, just because a lender approves you for a large loan doesn't mean it's the right decision for your financial well-being.
