Many people have been asking us whether we’re headed toward another real estate crash. That’s a great question, and the short answer is no. Here are the three main things that are different about our current real estate market than the one we had before the last housing crash in 2006:
1. There are no subprime mortgages. In 2005 and 2006, people who couldn’t afford homes were buying them with stated income loans. Those types of subprime loans no longer exist.
“Loan officers can no longer speak directly to appraisers.”
2. Buyers can put down more money. Tons of people have equity in their homes these days, so they’re able to put down more money when buying.
3. Mortgage companies are stronger today. Back in 2005 and 2006, multiple lenders were going bankrupt. However, practices have changed to help both lenders and consumers. For example, loan officers can no longer speak directly to appraisers.
If you have any questions about our present market or your real estate goals, please feel free to reach out to us via email or on our website. We would love to help you.
