How The U.S. Housing Market Has Been Impacted by the 2008 Recession

3d image of house with graph falling

The financial crisis that occurred in 2008 threw everyone off unexpectedly. After all, it had been the biggest market disruption since the Great Depression. The number of renters to owners has decreased from 43.3% to 38.5%. The people that endured or forced to take up this shift were mostly far east and west coasters, older millennials, and wealthier households. The recession and its effects took most of a toll all the way up to 2014. It might not seem like a significant number, but we can construct a visual to show exactly how this decline has played out. 

An Increase in Rent

Not only is the amount of renters increasing, but so is the actual pay of rent itself, which has risen faster than income. The average rent in the top fifty markets has risen by 22.3%, while incomes have nationally fallen by 5.8% since the recession. To put this into context, the average homeowner spends approximately 30% of their paycheck on making and paying rent. Seems to be a bit much, right?

A Step Down from Homeownership

Not only has there been an existing decline in homeownership, but as well as many of the markets that were hit hardest by foreclosures. As rent increased, renters were having a harder time meeting the payment deadline, eventually being forced to foreclose. Although, most of this foreclosure ended up benefiting no one. Lenders weren’t even able to balance payments themselves. 

The Fortunate Few

There was only a small amount of markets that weren’t directly impacted by this recession. Most of the housing markets that saw the smallest increase in renters were in New York, Connecticut, and Boston. 

Cash Home Buyers Is Here to Help

It can be a gamble to buy a home, and if you’re not comfortable with owning one, it may be in your best interest to sell. Contact Cash Home Buyers today so we can take your homeownership off your hands!

 

Why A Looming Recession May Mean Its Time To Sell

A man stands atop a red line and tries to predict a future recession

With many economists and experts predicted a recession soon, many home sellers are wondering if now is the time to sell their home. It can be intimidating to think about, but many economic signals indicate that it could be a serious possibility in the next year to year and a half. If you’re on the fence about selling your home, here are a few factors to take into consideration.

What type of home do you own?

A recent study by the real estate brokerage group Redfin recently conducted a study to determine which homes were most likely to lose value in a recession. The conclusion was that condos and townhomes lose the most value overall, while single-family and two-story homes generally kept the most value. If you have a condo or townhome, your best financial option may be to sell quickly, before a recession torpedoes the value of your home.

What’s your current financial situation like?

If you’re strapped for cash or need to sell your home fast, a cash sale may be the best decision for you. In a recession, the housing market becomes what is known as a buyer’s market. This simply means that buyers have more sway in home buying negotiations since fewer people will be looking to buy a home. In this scenario, getting the value you want for your home will be even more difficult, and you may have to take significantly less money in order to land a sale.

What are your future plans?

People sell homes for a number of reasons. It may be their livelihood, or it could be a home they inherited from a loved one. A new job opportunity can also mean it’s time to sell, so it’s best to closely evaluate your situation before a big decision. If you anticipate a big move in your future, then a quick cash sale may best set you up for success.

El Paso’s Best Cash Buyers

El Paso’s real estate market continues to grow in size and value, and El Paso Cash Home Buyers expands with it. If you’re looking for the most cash return for your home, contact us to have money in your hand in as little as seven days!

The Perils of a Traditional Home Sale 

A massive decline in property values shown by wooden houses and a downward arrow overhead

If you’re not sure whether you should sell your home the traditional way, first read up on some of the issues that may arise from a traditional home sale.

How a Traditional Home Sale Works

Remodeling

Contractor gluing wallpapers onto a white background during a home renovation project

A traditional home sale can take months to years, depending on your location, the condition of your home, asking price, neighborhood that you reside in, and a plethora of other factors. The first step in a traditional home sale is often the remodeling period, which can take weeks or even months to complete and will bleed your wallet dry of thousands of dollars in the process. In some areas, older and stagnant homes can stay on the market for several years or even a decade, which can make a remodel a necessity to get your home sold. El Paso Cash Home Buyers allows you to skip this expensive step, since we buy your home as is.

Home on the Market

For sale sign in front of home waiting to be sold in a slow housing market

After the lengthy remodeling process, now the home has to sit on the housing market and wait for potential buyers to inquire. This can lengthen the home buying process by several months depending on where you live, and this can eat up more of your money since you have to maintain the home while it sits on the market. If you needed a quick turnaround for your property, this could be one of the worst decisions you could make for achieving that goal. If you find yourself in this situation, don’t hesitate to call us—we can have your home sold ad cash in your hand in as little as seven days!

Signing the Contract

Real estate agent instructing potential homeowner on how to sign the contract for the new house

 

Once a contract is finally agreed to between you and a buyer, you would think that you could wipe your hands clean of your old home, get your money and move on, right? Nope! The process is still not over. The buyer still needs to get a mortgage worked out by a mortgage company, and will likely have to get the home professionally inspected as well. This can add 30 to 90 days to the already several month or several year-long process, and this assumes that the buyer doesn’t change his mind halfway through and you have to start the process all over again. In a cash buyer sale, you can have money for your home in as little as a week, which means having cash to use right away for all your needs.

Hidden Fees and Commission

A hidden fee is revealed behind a light blue wallpaper

Once you finally reach a final deal on the home and all aspects of the home selling process have been finalized, you’ll still have a mountain of headaches from fees, taxes, and other financial surprises at the close of the sale. Fees may come from the realtor, title company, or attorney that helped close the sale, and that doesn’t even factor in the commission that the realtor may take from the sale, which can shave several thousand dollars off the money you recieve. In the end, the home selling process is typically a major financial and mental burden of the seller, and can be potentially ruinous if you need money in a short amount of time.

Skip the Hassle with El Paso Cash Home Buyers

The traditional home buying process can be a hassle. Call us today for quick cash for your home!

The Advantages of Cash Home Buyers Compared to Traditional Real Estate Agents

Cash home buyers

Popular online real estate databases like Zillow, Redfin, Realtor, and Trulia have made it feasible for anyone looking to sell their home to do so much more efficiently. Real estate agents rely heavily on online marketing in order to attract more potential buyers. While the tactic to sell homes have improved over the past couple of years, it can still be difficult to sell a home. Many consider other means like placing it for rent or gifting it to a child. Another option that has gained momentum is selling it to a cash home buyer. If you’re considering this route, you may be wondering is it worth it? What are the advantages? As a cash home buyer in El Paso, allow us to explain the main advantages of choosing this viable option.  

Maintain Privacy — No One Will Have to Know You’re Moving

Once you place a ‘For Sale’ sign on your lawn, you can expect your neighbors to take interest in your situation. For better or worse, sharing your need to move can be uncomfortable. A real estate agent’s job is to market your home the best of his or her ability so that will draw more attention to your situation. While you undoubtedly want to sell your home quickly, if you haven’t moved out, it can be extremely overwhelming dealing with the attention. Instead, cash home buyers will view the home at your convenience and make you an offering price without ever having to place a sign on your lawn. If privacy is of a concern for you and your family, you’ll want to consider working with a cash home buyer.

Save Time and Effort

Showing homes to potential buyers can be exhausting. First, you’ll need to prepare the home. This involves making repairs, moving furniture or emptying the home, and sprucing it up so that you can lure in buyers. You might wonder why you’re having to spend so much money on these repairs and visual improvements when you’ll be moving soon. The reality is, if you go the traditional real estate route, it involves more time and effort to sell your home. On the contrary, cash home buyers work fast and offer to buy your home as-is. At El Paso Cash Home Buyers, we often close deals in as little as seven days. You can completely avoid spending time, money, and effort in selling your home by working with us!   

You Can Move On From a Difficult Situation Much Sooner

There’s no telling how soon your home will sell when you go the traditional real estate route. This can be troubling if you’re trying to move on from a difficult situation. But not to worry — when you sell to a cash home buyer, you won’t have to wait much longer to leave your home. El Paso Cash Home Buyers can buy your home as-is and give you enough time to move out. We realize you’re already in a stressful situation, we won’t make it any more complicated!

Contact El Paso Cash Home Buyers Today

Whether you’ve had bad luck in placing your home on the market or need to sell your home fast because you’re relocating to another city, we can help! Believe us when we say you’ll see the benefits of a cash home buyer, right away. Give us a call today to learn more.