Some Buyers Want a Crash. Here's What to Tell Them

If some prospects have told you they're not buying a home until the market crashes, you're probably not the only agent who's heard this. This is because a recent survey found that over 40% of respondents expect a market crash this year, with almost as many actually hoping for one similar to the 2008-9 meltdown. These respondents are also convinced that interest rates will continue to rise.

Wondering about the best way to change their minds? It's time to compare housing data from 2008-9 to recent data.

One smart place to begin: explain legislation that's been put in place to prevent future crashes. This has, in turn, put a stop to the non-qualified buyers entering the market. This played a big part in creating 2008's shaky financial scenario, together with the investment corporations connected to it.

Another major difference that tells us that a 2024 crash is highly unlikely: the number of homes for sale. Today's housing shortages are the opposite of the surplus that existed 15 years ago.

When discussing today's market with those hoping for another crash, explain how drastically the market has changed. Describe how today's scenario—higher amounts of equity, stricter lending standards, and limited inventory—has helped create safer standards of home ownership.

Source: keepingcurrentmatters.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.