Archive | January 9, 2019

When Will the Housing Market Crash Again?

Still, remember the last housing market crash? If you think that it is something that will never happen again, then you better think again. What is good, however, is that it will likely not take place until the year 2026, according to Professor Teo Nicholas, from the Harvard Extension School. The prediction is based on a certain study conducted by Homer Hoyt, an economist. Furthermore, it is notable that the real estate booms and bubble bursts take place in an 18-year cycle, at least since the 1800s.

In 2017, Professor Nicholas noted that the country’s real estate landscape is still in the middle of an expansion. What follows is what experts call a hypersupply, which will not happen until the rates of rental vacancy start to rise significantly. Should that come to pass, you can expect the Fed to raise the interest rates to help quash a looming market crash.

4 ways that will protect you from a crash

Let us face it, a great majority of residents in the United States will likely feel the impact of a Corona Del Mar Real Estate market crash. There are, however, seven things to consider, which will help protect you from a crash. Let’s take a closer look at them.

  1.    A house to live in – first and foremost, when buying a house, make sure you are buying it for the right reasons. Buy a house for you and your family to live in; do not buy one for flipping
  2.    Aim for a fixed-rate mortgage – the next thing to consider is getting a fixed-rate mortgage. Doing so will keep you protected in the event that mortgage rates go very high. Through a fixed-rate mortgage, your monthly payments will remain the same.
  3.    Worst house, great area – if you are going to buy a house, go for the one that can be considered the least but is located in a fantastic area. See to it that the community is near good schools, regardless if you have children or not. This will come into play when the time comes that you decide to sell your house. Just make sure that you will buy a house that has at least three-bed rooms but is still within your budget.
  4.    Diversify your investments – another excellent way of protecting yourself from a Orange County real estate crash is to make sure that your portfolio is diversified. This means that your investments should not be placed in one basket alone. Invest in stocks as well as commodities and bonds.