DID YOU KNOW? Bubble or No Bubble…..That is the question.
So many buyers and homeowners are mentally preparing for the next housing bubble to pop. We were all affected by the 2008 Recession when values dropped substantially, and countless homeowners lost their homes to foreclosures or short sales. With values surpassing record levels, isn’t housing in a bubble again? Even though so many are anticipating another bubble, I believe the answer is simple: NOPE .
But today, it is a different story…. As Steve and I can attest to while we are refinancing our home, Lenders are being MUCH more stringent in their underwriting of loans. In todays environment, it is much more difficult to obtain financing. Buyers must qualify for a loan and furnish paperwork that establishes their ability to make their monthly payments.
The Great Recession was prompted by the housing market where anyone could purchase a home regardless of their true qualifications. Zero down payment loans, fudged loan documents, negative ARM’s, cash out refinancing, and subprime lending contributed to the run-up in values that filled the housing bubble that ultimately burst in 2007. As a result, the housing market collapsed, and home values plummeted.
It is also important to note that it is much more difficult to obtain financing today. Buyers must qualify for a loan and furnish paperwork that establishes their ability to make their monthly payments.
DID YOU KNOW? That the Chapman University Economic Forecast is coming up…. let’s hear what they have to say. Chapman's Economic Forecast has been cited in major media outlets across the nation and is recognized for, in particular, its statistical accuracy. This year's conference will be held on Tuesday, December 10 in the Renée and Henry Segerstrom Concert Hall. Proceeds go to benefit the Chapman Scholarship Fund. I will be there and look forward to giving you a download.
DID YOU KNOW? Last Monday The S&P 500 index closed at an all-time high Monday, extending a recent string of gains in what’s mostly been a solid month for the market. The benchmark index closed at 3,039.42, around 14 points above its previous record set on July 26. The S&P 500 notched its latest milestone after weeks of hovering just below its prior high.