We all know the saying what must go up must come down. When we throw a ball up in the air it comes down because of gravity. The economy seems to work somewhat the same way, but when it comes down it is typically at a point that is higher than what it was before. Being a Woodbury Realtor, we need to keep our eye out so we can best advise our clients that are selling homes in Woodbury.
Even in 2008, the economy never reached as low as it was in 1987 when the stock market crashed. The percentage of drop maybe be close but our economy still moves in an upward direction even where there is blood in the streets as they say. That being said there has always been a correction of sorts in a 10 year period. If 2008 was the last recession and it is now 2019 something has to happen. This blog post will not get into the reasons why the economy goes up and down. We just know that if the economy is going to correct, why not sell on a high point and make the profits now.
In Woodbury MN, homes for sale are going for top dollar. Those homes for sale under 300k in Woodbury MN typically go for multiple offers. We have seen some Woodbury Home Owners that have held on to their bad purchase from 2005 to 2007 in the Luxury Home Market in Woodbury finally be able to sell.
The reason why the Home Buying Market in Woodbury MN is still so hot is that the Interest Rates are still low. Woodbury Home Buyers don’t realize how bad the Interest Rates were in the past. In the 1980’s they had Interest Rates of 18%. Woodbury Home Buyers wouldn’t buy homes in Woodbury, they would assume the Home Loan (take over the other homeowners loan) because getting a New Home Loan was so expensive. If you fast forward to before 2008, they were doing Interest-Only Loans on ARM’s (Adjustable Rate Mortgage) with an Introductorary Rate of 6%.
If you’re looking to sell your Home in Woodbury MN because you want to get a Bigger Home, get a Smaller Home, going through a Divorce in Woodbury, moving out of state, Can’t Afford Your Home because of job loss or other reasons this Spring of 2019 in Woodbury MN is your window of opportunity. Those Homeowners in Woodbury MN that move quickly and get their home in stage-ready condition and price their home aggressively to get it sold in a weekend versus drag it over months will be in a good position.
We’re not looking forward to doing short sales again, but we have a saying and that is “It is better to have it and not need it then to need it and not have it”. Are we preparing to do short sales in 2020, you bet. We know from going through 2008 that people will not be able to afford their homes at some point We know that if the interest rate does go up it limits buyer from being able to afford new construction homes and new construction homes have to bring their prices down which then floods the Woodbury MN home market with new construction, previously owned homes, foreclosures, and short sales.
We’re not trying to scare you into selling your home this spring with us. We just want you to understand what is going on in the economy and why timing in selling a home can go from a wonderful thing to a nightmare. If you think that the economy is sound and we won’t see a correction and maybe even a crash, then fact