5 Reasons the bubble will not crash in the Forte Meade, Andrews Air forces Base, Patuxent Naval Base

Dated: 05/17/2020

Views: 5

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®: Skip Young | EXP Realty | Waldorf MD Realtor® Realtor®, Veteran, New Home Sales 888-860-7369 x 240 Broker 301-337-1999 Cell eXp Realty 137 National Plaza, Suite 300 National Harbor, MD 20745 www.skipyoung.com Caruso Homes “Build on Your Lot” 2120 Baldwin Avenue, Suite 200, Crofton, MD 21114 www.carusohomes.com Waldorf MD Realtor® | Veteran | eXp Realty | Author | VAREP Director of Government Affairs Greater Annapolis Chapter

Your Waldorf MD Realtor® - Skip Young

f you are stationed here and are looking to purchase or sell a home please contact Skip Young Realtor®:
Marine Barracks 
 Joint Base Anacostia-Bolling PSD Washington, DC Washington Navy Yard USCG Headquarters Visitor Entrance the United States NavyNavy Band US Army National Guard Armory American Military Society Navy Lodge US Naval Reserve Readiness Military Naval & Air AttacheWashington DC Police Department Air Supply US Coast Guard Headquarters Joint Anacostia-Bolling AFB Department of NavyFort George G. Meade Naval Support Facility Indian Head Joint Base Andrews Coast Guard Yard US Air Force Civil Air Patrol NAVAIR Maryland Military Department Naval Surface Warfare Center Army National Guard Recruiter US Army Reserve Center Naval Air Station Patuxent River Welcome to the Fort Belvoir Air Force United States Department Joint Base Andrews, MD

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

301-337-1999 Cell

eXp Realty

137 National Plaza, Suite 300

National Harbor, MD 20745

www.skipyoung.com

Caruso Homes “Build on Your Lot”

2120 Baldwin Avenue, Suite 200, Crofton, MD 21114

www.carusohomes.com

Waldorf MD Realtor® | Veteran | eXp Realty | Author | VAREP Director of Government Affairs Greater Annapolis Chapter

Blog author image

Skip Young

Fort Meade MD Realtor | PCSing Relocation Expert | Skip Young | RealtorĀ® | Veteran | EXP Realty As a Maryland Realtor I bring additional skills to the Maryland Real Estate market. I grew up here. I ....

Latest Blog Posts

Need to hire a realtor around Fort Meade, Andrews Air Force Base, PAX River to Sell or buy a new home.

Need to hire a realtor around Fort Meade, Andrews Air Force Base, PAX River to Sell or buy a new home. Looking for Rentals around Fort Meade MDWhile many people across the U.S. have traditionally

Read More

5 Reasons the bubble will not crash in the Forte Meade, Andrews Air forces Base, Patuxent Naval Base

5 Reasons the bubble will not crash in the Forte Meade, Andrews Air forces Base, Patuxent Naval BaseBuying a Home in todays Market in Waldorf MD is Worth the investment. We are not heading to a

Read More

PCS the Military and Veterans buy and sell Homes around Fort Meade, Andrews and PAX

Technologies powering real estate process technology is charging the real estate transaction making buyers Regulations vary by state and locality but here are a few specks keeping the process moving

Read More

Thinking about buying or selling a home around the Fort Meade MD area?

Thinking about buying or selling a home around the Fort Meade MD area?Here is what the experts see coming right around the corner near Fort Meade, Andrews Air Force Base and Pax River Naval Base.

Read More