I’ve been hearing some rumblings from homeowners lately about the rising prices of homes and the fear of a potential housing bubble, but as someone that works in the industry every day I just don’t see it.
Harkening back to the 2005 thru 2007 era of speculative buying, loose lending practices, under qualified buyers and 120% LTV ARM purchasing it not hard now to see where all of that was heading. Contrast that with today’s market and you’ll see something very different. Lenders are stepping up their game with stricter qualification practices requiring buyers to enter the market with some skin in the game, and the ARM loans which dominated the market during the run up to 2007 are practically nonexistent today. Mean while, Interest rates have remained favorable and consumer confidence has grown. Couple that with an unusually low inventory of homes and it’s easy to see why prices have risen. Even with the current uptick, however, we are still as much as 15% below the median home price recorded at the end of 2006 and early 2007. For now it appears to be simple supply and demand that is driving a pretty healthy real estate market in the valley. If you’ve been thinking about making a move, now is an excellent time to do it. Give me call to discuss what it would take to get your home on the market and sold today. Spring is here and the inventory is still low. John Poole 208-440-9600 email@example.com