The local real estate market looks a lot different than it did three years ago. The current economic crisis could reshape it dramatically for the future. We had a local real estate expert give us his take on what that will mean exactly.
Personal income, home prices, and construction will shape the new reality in the housing market. Jon Krause expects fewer homes to be built. Builders simply don’t want an overflow of inventory. Fewer luxury homes will also b built, as wealth loss and cautiousness could price many out of the market. But perhaps the biggest change, Krause says, is one we are already seeing: the return to stricter lending standards.
“Frankly a couple of years ago I was surprised at some of the loans being made. To me it didn't seem logical but if the bank felt it was a reasonable thing to do it was their decision. So now there will be tighter restrictions, but I think they are smart restrictions too. It will cause people to work harder to be in a position to buy there first home."
Krause also says homes that weren’t affordable to many people, are now within their reach because of lower interest rates.