Someone asked me the other day, "Why are you taking a class, didn't you just renew your license?" Yes, but that's not why I'm educating myself. You see, most people believe that if you
No This Is Not The 2005 Bubble All Over Again
Have you heard anyone say recently that this market is just like the 2005 housing bubble? I have... and it's not, in case you were wondering.
Now, if you need actual proof, let me enlighten you. In 2005, the bubble was dominated by a lot of 100% financing, and very little cash transactions. There were interest only loans flying off the shelves. Appraisers were.... eh hem.... being pressured by commissioned parties. People were getting loans based on lies, like 'sure, I plan to live there as my primary' or 'of course I make a million dollars a year, trust me'. Financing was a joke, sales were happening with zero days on market and sometimes same day turn arounds. It was insanity.
Fast forward to today. In the 2017 housing market, we're looking at individuals buying homes to live in, using down payments as equity (not the promise of tomorrows value). We have cash investors putting money into homes to improve their quality, not just passing a home off to the next warm body to show up. Appraisers are managed and heavily regulated. Loans are highly regulated, and in fact, there are waiting periods in place now to make sure that the buyer is 'really sure'. Our job growth in the valley is not based on real estate, construction and cyclical industries such as tourism. Instead, we have job growth based on health fields, like Banner Hospitals and the urgent cares moving in, Financial fields are more prominent with people investing money instead of buying toys with all of their false equity, and of course our ever growing Tech industries, which will always grow and improve. (unless robots take over and erase us, but then the housing market won't matter)
Still don't believe me? Well, how about some hard data? Take a look at a few simple charts below, courtesy of The Cromford Report, showing the real data trends in the housing market over the last decade and beyond.
If you would like some information on your area, specifically, give me a call or email and I would be happy to send you information on your city, zip or neighborhood.