There has been a lot of negativity in the news regarding the economy, and most people’s frame of reference includes the Great Recession we had back in 2008. That crisis was caused by the housing market, but today’s issues are very different.
Here’s a relevant statistic: Almost 60% of homeowners have at least 60% equity in their properties, and just over 42% of all homes nationwide are mortgage-free, meaning they’re owned free and clear. The average amount of equity in homes across America is $177,000.
So what does that mean for us? Well, if there is a market downturn, the chance of people walking away from substantial equity is going to be almost zero. Who would walk away from their homes when they have thousands of dollars in equity? Even if you lost your job or the market depreciated (which no one predicts will happen, by the way), that’s unlikely.
We can say with pride to our clients and prospects that no matter who is in office or whatever happens with the government, owning real estate is one of the best ways to build wealth. It’s a form of forced savings for people, and in almost every hypothetical scenario I can think of, it’s still a good decision to make.
If you’re having some challenges with nervous clients or need any help building your business, just reach out to us. We’ll be happy to help.