๐ก Despite higher mortgage rates, home prices are being driven up with bidding wars ๐ฐ and a lack of inventory, and that can be scary. So scary in fact that it may discourage some folks from looking to buy a home now, afraid that we are in a housing bubble.
๐๐ฒ๐ฟ๐ฒ ๐ฎ๐ฟ๐ฒ ๐ฏ ๐ฟ๐ฒ๐ฎ๐๐ผ๐ป๐ ๐๐ต๐ผ๐๐ด๐ต ๐๐ต๐ฎ๐ ๐๐ต๐ถ๐ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ถ๐ ๐๐ผ๐๐ฎ๐น๐น๐ ๐ฑ๐ถ๐ณ๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ ๐๐ต๐ฎ๐ป ๐๐ต๐ฒ ๐ต๐ผ๐๐๐ถ๐ป๐ด ๐ฏ๐๐ฏ๐ฏ๐น๐ฒ ๐๐ฒ ๐ฒ๐
๐ฝ๐ฒ๐ฟ๐ถ๐ฒ๐ป๐ฐ๐ฒ๐ฑ ๐ฎ ๐น๐ถ๐๐๐น๐ฒ ๐ผ๐๐ฒ๐ฟ ๐ฎ ๐ฑ๐ฒ๐ฐ๐ฎ๐ฑ๐ฒ ๐ฎ๐ด๐ผ...
โ
๐๐ผ๐๐๐ถ๐ป๐ด ๐๐๐ฝ๐ฝ๐น๐ ๐ถ๐ ๐ฒ๐
๐๐ฟ๐ฒ๐บ๐ฒ๐น๐ ๐น๐ถ๐บ๐ถ๐๐ฒ๐ฑ ๐ก
Despite mortgage rates much higher than a year ago, demand remains strong. Inventory of homes for sale is currently running at less than 2 months, a historic low. A healthy inventory is about 6 months, and in 2008 we were actually up to as high as 11 months inventory.
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๐๐ผ๐บ๐ฒ๐ฏ๐๐๐ฒ๐ฟ๐ ๐ฎ๐ฟ๐ฒ ๐บ๐ผ๐ฟ๐ฒ ๐ฐ๐ฟ๐ฒ๐ฑ๐ถ๐๐๐ผ๐ฟ๐๐ต๐ ๐
In 2008, when the housing market crashed, mortgage standards were at an all time low for credit scores and down payment requirements, as well as proving income and assets to purchase. Current guidelines are much stricter, making the borrowers more financially secure.
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๐๐ผ๐บ๐ฒ๐ ๐ต๐ฎ๐๐ฒ ๐ฒ๐พ๐๐ถ๐๐ ๐
Homeowners were pulling out equity back in 2008, causing many to be upside down. This time around equity levels are extremely high, meaning that homeowners could see values decline slightly without concern.
๐'๐บ ๐ฎ๐๐ฎ๐ถ๐น๐ฎ๐ฏ๐น๐ฒ ๐๐ผ ๐๐ต๐ฎ๐ฟ๐ฒ ๐๐ถ๐๐ต ๐๐ผ๐ ๐ต๐ผ๐ ๐๐ผ๐ฑ๐ฎ๐'๐ ๐น๐ผ๐ ๐ฟ๐ฎ๐๐ฒ๐ ๐บ๐ฎ๐ธ๐ฒ ๐๐ต๐ถ๐ ๐ฎ ๐ด๐ฟ๐ฒ๐ฎ๐ ๐๐ถ๐บ๐ฒ ๐๐ผ ๐ฐ๐ผ๐ป๐๐ถ๐ฑ๐ฒ๐ฟ ๐ฏ๐๐๐ถ๐ป๐ด ๐ฎ ๐ต๐ผ๐บ๐ฒ, ๐ฒ๐๐ฝ๐ฒ๐ฐ๐ถ๐ฎ๐น๐น๐ ๐ฎ๐ ๐๐ฎ๐น๐๐ฒ๐ ๐ฐ๐ผ๐ป๐๐ถ๐ป๐๐ฒ ๐๐ผ ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ. ๐ฅ๐ฒ๐ฎ๐ฐ๐ต ๐ผ๐๐ ๐ฎ๐ป๐๐๐ถ๐บ๐ฒ!
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