Many people have begun to fear that a housing crash in Glendale is looming, and any home sellers looking to sell a house fast in Glendale are starting to worry that they will be rapidly losing value in their largest asset. If you need to sell a home in the current market, you may need to prepare yourself for a potential loss, if you are even able to sell the house at all.
Due to the increased inflation – 9.1% CPI over the summer creating a 40-year high – and the ever-rising interest rates (pushed increasingly higher by the Fed), many potential home buyers are turning their backs on the real estate market. They are hoping that the rates will eventually decrease so that they can once again reasonably afford to buy a home.
Even those home buyers who can still afford to purchase a home in the current real estate market are reconsidering their decision to buy. If they can delay their purchase, they will likely wait until the market turns around to buy a home so that they do not invest inappropriately. A potential housing crash in Glendale affects both home sellers and home buyers, but there is hope for those looking to sell a home fast in Glendale.
At Your Home Sold Guaranteed Realty AZ, our realty team is well-versed in all aspects of the real estate market in Glendale and throughout Arizona, and we can help you understand the particular principles of the real estate industry that can be employed to ensure success when selling your home.
What Is a Housing Crash?
Whenever the housing market takes a downturn, many people begin to panic because they know how devastating a full housing crash can be for homeowners. They will lose an excessive amount of value in their property, and selling the home will leave them with far less profit than they expected. Buying a home may even be more difficult because they will be unable to afford a substantial down payment.
Before we discuss exactly what a housing crash is, though, it is first important to explain the concept of a housing bubble. The bubble occurs when prices for homes go above and beyond their true market value, and a natural correction to this situation will eventually bring the prices back down to a normal level. This usually happens quickly.
Property prices rise for a variety of reasons. These include:
- High demand from home buyers
- Low supply
- Lower than usual interest rates
There are certain times, though, that prices increase artificially. Usually, this is caused by extremely low interest rates for those looking to buy. With lowered interest rates and fewer credit standards, more individuals will get mortgages.
In almost every housing bubble, a housing crash will occur. With a rise in interest rates, there will be less demand for homes and a drop in the selling prices. This pops the housing bubble and causes the housing crash because the market is unstable, as it was in 2008
A housing crash can occur at the local level but can also happen with the state or national markets. Due to its connection with the overall health of the economy, a housing crash can lead to a recession (or the other way around as well).
Consider the 2008 Housing Bubble
In 2008, there was a stark decline in housing prices which burst the housing bubble occurring at that time. This led to the Great Recession that year because the housing market had been booming throughout the early 2000s. In 2006, housing prices peaked and then began to decline. By December 2008, the Case-Shiller home price index recorded the highest reduction in housing prices in its history.
At this point, many homebuyers were unable to actually pay their monthly mortgage payments, and some of their homes were worth less than their mortgage. This is known as the negative-equity position, and it is a very difficult situation to be in for any homeowner.
Banks and mortgage lenders were stuck with these mortgages. Interest rates grew so high that homeowners could no longer afford the mortgages, and the crisis in the credit situation caused foreclosures and the eventual recession.
Is a Housing Crash on the Horizon in Glendale
The current state of the economy in recent years has left many wondering if a housing crash in Glendale is on the horizon. The real estate market has been very hot lately, but high inflation has resulted in a rise in interest rates. Does this mean that a housing crash is in our future?
The answer depends on whether we have been experiencing a hot market or we’ve been creating a housing bubble. Bubbles are usually pretty rare and are marked by unsustainable growth in housing prices as well as low mortgage rates. Conversely, a hot market is fairly common and is dependent on the economic concept of supply and demand of a particular area.
After analyzing the current real estate market, professionals in the industry seem to all agree that a housing crash in Glendale is unlikely due to:
- High demand
- Decreased supply
- Credit-worthy home buyers
- Strict lending requirements
Take for instance the fact that home sales in June 2022 reduced by 5.4% and the median sales price remained 13.4% higher than the same timeframe last year. While the higher interest rates may lead to reduced asking prices (or even a leveling off of the prices), it does not mean that there will be a crash that mirrors the housing crash of 2008.
Things You Need to Know to Sell a House Fast During a Housing Crash in Glendale
Have you been considering selling a home in Glendale, AZ, and you are concerned about the current state of the real estate market? Our experienced realtors at Your Home Sold Guaranteed Realty AZ can help you understand how the home selling process works and how to prepare your home for sale, even during a potential housing crash.
Be Sure Your Home Is Priced Correctly
Whether it is a normal time for the housing market or during a potential downturn in the industry, the asking price for your home will be critically important to the success of your sale. It is more important than ever to make sure that your home is priced correctly and that you are able to get full market value for your investment. Unfortunately, you may have to price it a bit lower than expected due to the increased interest rates.
If you price your home too high, it will most certainly scare off any prospective home buyers. Remember, a home buyer is always looking for a great deal, especially since the mortgage rates are going to be higher. An asking price that is too low will essentially ensure that you will have a reduction in your profits.
For this reason, it is essential that you work with an experienced realtor such as ours at Your Home Sold Guaranteed Realty AZ. Our team will work with you to ensure that you are able to price your home correctly using our specialized knowledge of your area’s home price patterns.
Turnkey Homes Sell Fast in a Housing Crash
When you want to sell a house fast in Glendale, it is important to remember that home buyers are looking for homes that are ready to move in and start their new lives. During a troubled housing market, home buyers will likely not have the time or funds to buy a home that is in need of repairs or renovations.
To ensure that your home is ready to sell to homebuyers looking for a turnkey home, it is essential to do everything you can before it sells to prepare it. This includes things like:
- Getting a pre-inspection done
- Making any necessary repairs
- Enlisting the services of professional cleaners
- Staging the home with neutral furniture, decor, and color patterns
- Listening to any other advice your realtor has to offer
Ensuring these actions are taken will improve your chances of selling a house fast in Glendale and for the highest price possible.
Timing Is Everything
As with just about everything you can sell, the timing of the sale is essential for success. If it is possible to wait until the housing market recovers, then that is recommended to ensure that you avoid lower housing prices. After all, selling a house fast in Glendale during a housing crash is very challenging.
If you cannot wait, work with our skilled realtors at Your Home Sold Guaranteed Realty AZ to consider your pricing strategy as well as the length of time you can realistically wait before housing prices in Glendale reduce even more.
Buying a Home Simultaneously May Be Lucrative
Although it may seem counterintuitive to put out more money than you will likely be taking in from your home sale, buying a home in the current market can be very lucrative. You will always want to buy low and sell high, so purchasing a home now – in the reduced housing market – can eventually lead to an economic boon for you once the market recovers. You may be able to sell that home at a higher price than you paid for it and make a substantial amount of money.
Be Aware of the Role iBuyers Play
A relatively new concept in the real estate industry is the role of the iBuyer, and they can drastically influence a housing crash. iBuyers are companies which are able to buy homes as-is directly from home sellers, and the home sellers do not need to fix up their homes, list them on the real estate market, or go through the complex home selling process.
These companies have developed an algorithm that determines how much a home is worth. They pay home sellers that price for their homes, make repairs to the homes, and sell them for a high profit. Unfortunately, the prices are so low other home sellers cannot reasonably compete. And this can affect the overall prices of homes in the area.
Our realtors at Your Home Sold Guaranteed Realty AZ will explain the role of iBuyers to you in more detail and how they may affect your ability to sell a house fast in Glendale. To get top dollar for your home, even in a housing crash, be sure to rely on the experience and expertise of a skilled realtor such as ours.
Our Glendale Realtors Can Sell a House Fast, No Matter the Market Conditions
If you are ready to sell a home in Glendale but are concerned about the state of the housing market as well as the potential for a recession, contact our experienced realtors at Your Home Sold Guaranteed Realty AZ to learn more about home selling success. Not only will we guide you through the entire process, we will also provide you with unique guarantees that other realtors in Glendale simply cannot or will not offer.
With our in-depth knowledge of the Glendale housing market, we will ensure that you are successful in your home selling endeavor. In fact, we guarantee that your home will sell for an agreed-upon price and within a particular time frame. If that does not happen, our team will buy it from you!
To learn more about all of our home selling guarantees as well as the best ways to sell a house fast in Glendale, give us a call at 623-283-2067 or simply fill out the form below with the requested information. One of our experienced realtors will provide you with a detailed response so that you can decide if you are ready to sell a home in the current housing market.
We look forward to hearing from you!
