Are we headed for a CRASH? 😅
With such a major seller’s market, interest rates on the rise, and prices skyrocketing - will we see another 2008? There are 2 things that set today's market apart from 2008.
I’m Chase Gallimore with In the Shoals Realty and I am here to break down the differences in the two markets so 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 the 2008 market, and you can see the high risk indicated in the chart below, but you can also see that it is no longer a factor, the type of loans that caused those issues then are no longer in existence.
This has also led to our second factor to consider, foreclosure.
Foreclosure 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 homes being foreclosed.
But what about rising home costs? More expensive homes and higher interest rates must make it hard to find really qualified buyers? 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 good place! Very different from 2007.
Buying a home right now is absolutely an option and I’m here to help with all of your buying or selling needs. If you have any other questions about the market, give me a shout and I can help you decide what’s best for your family in this market. Just don’t settle for less. Call Chase Gallimore.