This Isn't a Repeat

It’s not surprising that when faced with a crisis we recall the last time we were challenged. For many of us that is the year 2008. Back then our financial health was in question, not our actual physical health.

People have a lot of questions and concerns right now. It’s tempting — even easy — to look at our current situation with its obvious economic impacts and search for comparisons to 12 years ago. And there is certainly no lack of cable news talking heads and self appointed experts offering their opinions.

But here’s what the true experts in the real estate and housing markets are saying: what we’re currently experiencing is not akin to 2008. That was a financial crisis. What’s happening now is event driven like the Blizzard of ’78 or 9/11 when events forced us to step back.

Another difference between now and 2008 is the financial health of homeowners. As Steve Harney, our industry’s leading analyst, said in a video conference organized last week by the Tom Ferry organization, “We were using our homes like ATMs. We were buying jets skis and going on vacations.”

What did we do when we maxed out our credit cards?  We refinanced and cut into our equity. With the slate wiped clean, we resumed spending.  But, we’ve learned our lesson, as the chart below shows.

According to Bloomberg News, about 37% of American homeowners have paid off their mortgages.  Many of us have more equity in our homes than we may realize.

While some sort of a slowdown is no doubt to be expected until businesses can ramp up and bring employees back to work, it’s also important to note that during four of the last five down turns, home values appreciated or stayed nearly level.

Our current crisis hasn’t changed one thing: people still need a place to live. Mari has been talking with a family that is re-locating because of a job change. She conducted a virtual listing appointment using FaceTime with the family giving her a tour of their home.

We have two closings this week that will go forward. (Legal services are considered an essential business.) The participants will either be keeping the appropriate distance away from each other or using the power of attorney option and not attending. The completed paperwork can be filed electronically with the Registry of Deeds.

So our message is this: you don’t have to put your plans on hold. Under the Governor’s order, real estate is not considered an essential business, so we are officially on the sidelines.

But, you can still visit our website to check out what’s currently listed. Offers could possibly be made with safeguards, including visiting the property. If you’re thinking about selling, we can talk with you about the steps you need to take to prepare your home for marketing. This way you can be prepared to make your move when our lives return to a more normal routine.

Please let us know how we can help. We’re available at 508-568-8191 or at [email protected]. Thanks.

If you can, please continue to support your local restaurants and businesses that remain open. We need their services and their employees need to return to jobs.

Also, please don’t forget our local non-profits, especially those that support children and families. Many kids depend on the breakfast and lunch programs at school. With districts shut down, non-profits will be doing the best they can to fill in. They can use our help.

Stay healthy…

Mari and Hank