COVID-19 and Real Estate Part 2

Covid-19 and the Real Estate Market Part 2

Hey everyone! Keith Jamison here with part two in our series on how the Coronavirus crisis is affecting the real estate market. Last week, Jillian detailed how a recession doesn't necessarily mean a real estate pullback. And this week, I'm going to be going over the home equity position we're in as a nation and how it's in a much better shape than we were in 2008.

Home equity changes

So as you can see on this slide, we can see side-by-side of the previous three years leading up to the huge pullback. As you can see, in 2005, 2006, and 2007, we were in huge debt positions on our homes, leveraging equities in second, and even third positions that often times, we couldn't afford. As you can see now, that number is cut in a third, or even a fourth over the past 3 years. And we really are actually leveraging some of the all-time highs in real estate, and we're not overdebted on our homes.

So what that means is, not only do we, as consumers, have the ability to now pull from our home's equity when we need it the most, at some of the best rates in history, but we're also not in a position where there's going to be a ton of foreclosures or short sales because people owe more than the home is worth. So that is a great sign and an indicator that the real estate market is still very strong.

If we can answer any questions, please don't hesitate to reach out. Jillian and I love to be here to inform and just to help anybody, no matter whether it's real estate related or just want to talk, we're here for you. 

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