Calling all homeowners, renters, and mom's-basement-crashers! 📢🏘️ Rumors of a housing market crash are heating up faster than a Kardashian plastic surgery scandal. #nofilter #allnatural 🥴🍑
It's not 100% certain we're heading into a crash, but the writing sure is on the wall. By the end of 2024, the brainiacs are predicting around a 10% drop in average housing prices. That's not as bad as things were in 2008, but we're totes paying attention. 👀
So what does a housing market crash mean for you? We've got the details.
Here’s Five Fast Facts on the impacts of a housing market crash:
- 📉 Over Under - If you're a homeowner with a mortgage, a housing market crash could impact your loan. There's a chance your home's value could dip below the value of your loan, and you could wind up paying more than what your house is worth. Also, if you need to sell your home, you could be forced to sell it at a loss.
- 🏡 Deals and Steals - If you're shopping around, you could potentially get an amazing deal on your dream home. During a housing market crash, more homes become available, which forces home prices to decline. Rising interest rates through a recession also force those who can't keep up with bills into foreclosure or a short sale, which could turn into a steal for a new homebuyer...
- 🚫 Raising the Bar - ...however, in a recession, mortgage companies make it tougher for people to get loans. They get much stricter with lending to cut down on default risk. A change in lending criteria and higher interest rates may force you to put off your home buying plans. Housing market crashes can also lead to job losses and spook people into not spending as much.
- 📈 Renters Beware - Renters might think they're free and clear of any housing market impacts, but think again! With home prices as high as they are currently, many people can't afford to buy, so they continue to camp out in apartments. This makes apartments harder to find and landlords can get away with charging a premium. Don't be surprised if your rent creeps up.
- 👴🏻 Senior Struggles - A housing market crash could also negatively impact the elderly, especially those who rent. Inflation has been devastating to seniors, as the poverty rate for those 65 and older went from 8.9% in 2020 to 10.3% in 2021. Older folks often live on fixed incomes, relying on their retirement funds, pensions, and Social Security checks to pay the bills. Any crazy rent raises could force them out of their dwellings.
🔥Bottom line: As Americans brace for another potential crash, it pays to be prepared! Recessions are known to do a number on the economy and the housing market is no exception. You might have to press pause on current plans to buy or sell, but the market moves in cycles and everything is temporary. With every crash, there's always a comeback. If you wanna learn more about saving for a home without giving up your morning java, click here!
Are you concerned about a potential housing market crash?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
Sponsored by Freespoke, the Privacy-Centered Search Engine with No Censorship. Try it today: www.Freespoke.com
