How is today’s Lowcountry real estate market different than the 2008 market?
Posted by The Cobb Group on
If you recall, the real estate crash of 2008 resulted in approximately a 30-35% reduction in housing value across all of the gated communities in the Lowcountry. There had been a “run up” of prices built on a panic buying of “flip” buyers owning many properties outside their financial capabilities. Banks were lending money like it was water, and when the world stopped in September 2008 banks and locals were caught with an enormous amount of useless debt and foreclosures were everywhere. The irresponsible buying and lending resulted in the collapse of a glass house of poor real estate decisions. Fortunately, most communities recovered their value over the years and recently escalation has been through the roof. What’s different this time as the real estate…
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Everywhere I go people keep asking about my thoughts on the local real estate market. Is it going to flatten? Will home prices go down if we wait to buy? How is rising inflation, and how are the interest rates affecting the local real estate market? Should I buy now? I don’t want to miss the market, should I sell now? First of all, we don’t have a crystal ball. There are so many factors involved in this equation that we can’t predict but we can look towards the past. History is the greatest predictor of the future. That being said, we are in unique times, and we would never have been able to predict that a worldwide pandemic would spur the wild west type real estate market of the last two years! As the world settles down, history is still the greatest…