With such major seller's market, interest rates on the rise, and prices skyrocketing, will we see another 2008?
There are two things that set us apart from the market in 2008.
Hi, Stephanie Martenzi, Supermom Superagent with Southland Properties, and I'm here to break down the market differences so that you can make an informed decision about your housing needs.
Let's first look at risk, product risk and borrower risk. Loose lending standards were a huge contributor to 2008 market and you can see the high risk indicated here, but you can also see that it is no longer a factor. The types of loans that cause those issues then are no longer in existence. This has also led to our second factor to look at, foreclosures. Foreclosures in the U.S. is at an all-time low. We can attribute much of this to those stricter lending standards. With more qualified buyers, this should lead to a lower chance of having to foreclose on a home.
But what about rising home costs? More expensive homes and higher interest rates must make it hard to find really qualified buyers, right?
Well, according to the Federal Reserve, this actually is not the case. While it has risen recently, the ratio of mortgage to disposable income shows that we have seen much, much worse and we are in a very good place today, very different from 2007.
Buying a home right now is absolutely an option and we are here to help you with all of your buying or selling needs. If you have any other questions about the market, feel free to reach out to me and we can help you decide what's best for your family in this current market.
This is Stephanie Martenzi, Supermom Superagent with Southland Properties, here to help you have a super fun, empowered, and informed real estate experience by guiding you every step of the way.
If you see me out in the community, make sure to say hi.
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