Facts that can help you determine if it is safe to buy or sell today.
With a fear of the market crashing, many people are struggling to decide if they want to wait to buy or sell a home. They’re worried that with interest rates rising, the market will crash. Are you concerned about that too? We have some market data that will hopefully calm your fears, help you make your decision, and give you a new perspective.
First, there are a lot of important differences between today’s policies and the ones present during the last housing market crash, and we want to share those with you.
In the early 2000s, banks and financial institutions developed products to draw people into buying a home, but those products were not in the consumer's best interest. At 1:00 in the video, you can see a graph that compares the product risk and borrower risk of that time versus now. Luckily, the risk for both has gone down tremendously, and there isn’t any product risk at all anymore!
Another big difference between the lending practices is the household debt service ratio. At 2:05 in the video, you can see a graph that compares a person’s disposable income with how much debt they have. Through this, we can see that what is allowed is very different today, which is encouraging.
"Today’s policies are far different from those present during the last housing market crash."
The number of foreclosures and forbearances is an important factor to consider when predicting if the market will crash. Those numbers are displayed in the graph at 3:00 in the video. It shows that even in the last two years, the number of homes in forbearance has decreased significantly.
The next graph shows our inventory. It says that a lot fewer homes are being built, so the inventory is decreasing. This is tricky because the demand is increasing.
Then the last graph we want to show you all lists the home price forecasts from seven major mortgage bankers. On average, they predict home prices will increase by about 9%. That number will fluctuate depending on the area, but this is the average.
These five graphs show data-driven numbers, so use these stats to make your decision. We hope this information is helpful! If you have questions about this topic, reach out by phone or email, we’d love to be of assistance.
