Your bill is ready to view You’re all set with automatic payments. Your payment details are below. Payment Amount: $279.36 Payment Date:
Waldorf MD Homes for Sale 5 Reasons the bubble will not crash Real Estate
5 Reasons the bubble will not crash in the Forte Meade, Andrews Air forces Base, Patuxent Naval Base
Buying a Home in todays Market in Waldorf MD is Worth the investment. We are not heading to a bubble and here are the facts. “With people having PTSD from the last time, they’re still afraid of buying at the wrong time.” There are many reasons, however, indicating this real estate market is nothing like 2008. Here are five visuals to show the dramatic differences.
1. Mortgage standards are nothing like they were back then. During the housing bubble, it was difficult NOT to get a mortgage. Today, it is tough to qualify. The Mortgage Bankers’ Association releases a Mortgage Credit Availability Index which is “a summary measure which indicates the availability of mortgage credit at a point in time.” The higher the index, the easier it is to get a mortgage. As shown below, during the housing bubble, the index skyrocketed. Currently, the index shows how getting a mortgage is even more difficult than it was before the bubble. 5 Simple Graphs Proving This Is NOT Like the Last Time | Keeping Current Matters
2. Prices are not soaring out of control. Below is a graph showing annual house appreciation over the past six years, compared to the six years leading up to the height of the housing bubble. Though price appreciation has been quite strong recently, it is nowhere near the rise in prices that preceded the crash. 5 Simple Graphs Proving This Is NOT Like the Last Time | Keeping Current Matters There’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did in the early 2000s.
3. We don’t have a surplus of homes on the market. We have a shortage. The months’ supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued appreciation. As the next graph shows, there were too many homes for sale in 2007, and that caused prices to tumble. Today, there’s a shortage of inventory which is causing an acceleration in home values. 5 Simple Graphs Proving This Is NOT Like the Last Time | Keeping Current Matters
4. Houses became too expensive to buy. The affordability formula has three components: the price of the home, the wages earned by the purchaser, and the mortgage rate available at the time. Fourteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased and the mortgage rate is about 3.5%. That means the average family pays less of their monthly income toward their mortgage payment than they did back then. Here’s a graph showing that difference: 5 Simple Graphs Proving This Is NOT Like the Last Time | Keeping Current Matters
5. People are equity rich, not tapped out. In the run-up to the housing bubble, homeowners were using their homes as a personal ATM machine. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. Prices have risen nicely over the last few years, leading to over fifty percent of homes in the country having greater than 50% equity. But owners have not been tapping into it like the last time. Here is a table comparing the equity withdrawal over the last three years compared to 2005, 2006, and 2007. Homeowners have cashed out over $500 billion dollars less than before:
5 Simple Graphs Proving This Is NOT Like the Last Time | Keeping Current Matters During the crash, home values began to fall, and sellers found themselves in a negative equity situation (where the amount of the mortgage they owned was greater than the value of their home). Some decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area. That can’t happen today. Bottom Line If you’re concerned we’re making the same mistakes that led to the housing crash, take a look at the charts and graphs above to help alleviate your fears. If you are stationed here and are looking to purchase or sell a home please contact Skip Young Realtor®:
Waldorf Maryland Realtor® - Skip Young Realtor®Your Waldorf MD Realtor® - Skip Young
Stationed here and are looking to purchase or sell a home please contact Skip Young Realtor®:
Skip Young Realtor® with Reviews as a Realtor®, has an extensive background in working with an Elite Unit while serving his country from 91 - 94. Now an Award-winning Realtor®, located in Waldorf MD, has proven not just in the ranks of the field with an Elite unit in the Army, but also in the Maryland Real Estate Business. By working with every type of client, to include active duty and veterans alike. His dedication to helping those who are serving and need to use their VA loan, need information on leasing a property due to a short-term duty station at any one of the bases here in the Washington DC, Maryland or Virginia. Military bases such as:
There are currently 23 million veterans and service members right in your local community of Washington DC, Maryland, and Virginia. They transact over $153 billion annually in the Local Real Estate purchases and Selling of Property, along with the Rental Market. Learn how you can help tap into and serve the veteran community with VAREP, the Greater Annapolis Chapter. Skip Young your Waldorf MD Realtor® and Veteran is still continue's to serve my country by helping our community of brothers and sisters by representing the Government Affairs division. The position is about assisting in changing the laws that help protect veterans and service members who need to find housing in the Washington DC Maryland and Virginia area.
Skip Young | EXP Realty | Waldorf MD Realtor®
Realtor®, Veteran, New Home Sales
888-860-7369 x 240 Broker
137 National Plaza, Suite 300
National Harbor, MD 20745
Waldorf MD Realtor® | Veteran | eXp Realty | Author | VAREP Director of Government Affairs Greater Annapolis Chapter
Latest Blog Posts
How to find a Top Realtor® Near me to sell my house TypeSingle FamilyCondosMulti-FamilyLandRentalsLeaseTownhouseSingle Family Homes for Sale in Waldorf MD Realtor®Homes for Sale in Charles
Searching for Homes for Sale in Waldorf MD 20601, 20602, 20603 TypeSingle FamilyCondosMulti-FamilyLandRentalsLeaseTownhouseSingle Family Homes for Sale in Waldorf MD Realtor®Homes for Sale in
Where are home prices in Waldorf MD going?What about the economy and housing recovery?Different income scenario when getting a VA Home Loanoverlays, income, debit, and credit when buying a new home