BETTER REGULATIONS ON LOANS
WHY EXPERTS BELIEVE WE ARE NOT FACING A REAL ESTATE BUBBLE With home prices increasing, interest rates remaining at record lows, and demand skyrocketing, the same question seems to be on everyone’s mind; are we in a real estate bubble? Experts and Realtors agree the answer is no.
Unlike the Great Recession’s collapse, home loans are no longer funded via low-doc/no-doc loans by borrowers lacking qualifications.
SUPPLY IS STILL MUCH LOWER THAN DEMAND Lack of supply has been a factor for over a decade and has only increased in the last year, creating massive shortages and dramatically increased prices.
NEXT GENERATION INFLUENCE Over 50% of young adults live with their parents. It’s only a matter of time before these individuals are looking for their first home. EQUITY IS GROWING QUICKLY 2020 saw an increase of 11%, and this year is on track for another 6% growth. People can sell or refinance and banks still come out ahead. PERMANENTLY WORKING FROM HOME COVID-19 has shown that many jobs can be performed remotely, so buyers are moving to areas that better suit their lifestyles.
When a bubble pops, nothing remains – this is opposite of the current market. Demand is fueling the increase in pricing, rather than low-qualified buyers obtaining loans. JONATHAN AND ANGELA-MARIE, With such a unique market, it’s important to work with a Realtor who understands not only the current market trends, but your community as well. Let Michelle and Sara go to work for you and help achieve your real estate goals. Call them today at (907) 317-0685 and (907) 242-5252 for a free consultation!