One of the biggest surprises of 2020 was the housing market. Nearly everybody thought it would implode due to the pandemic and we would be left in smoldering ashes kind of like we were in 2008. But nothing could be further from the truth when it came to buying and selling homes last year -- which could continue this year if interest rates remain at rock bottom levels and demand increases.
I'm not saying the housing market was stellar everywhere. But, overall, it's pretty healthy compared to what our fears were nine months ago. That's certainly good news right now and heading into 2021.
Clarocity's Chief Valuation Officer Ernie Durbin sees this high valuation trend a bit differently, however. Ernie joined us on the show to express his concerns about how the current value of homes nationwide could paint us into a corner if interest rates increase even slightly.
I hadn't heard this take before, so it was interesting to hear his explanation -- as well as what credit unions should be doing to prepare for this possibility. Ernie admitted this scenario probably won't happen this year because rates aren't going anywhere, which will keep the demand healthy. But the next couple of years, it might be a good idea to have a Plan B ready.
Check it out and let us know your thoughts. And watch the entire episode below for all the details.
Mike Lawson, Host
Married to a beautiful and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple.