Monday, March 4, 2019
3 Reasons Why We Are Not Heading Toward Another Housing Crash 2019

#homesforsale #realestatemarketing #realestate #realestatenews #locallistings #buyingahome #justlisted #sellingahome #lukewantsyou #nexthome #nexthomeplatinumadvantage #platinumadvantagerealty, Real Estate Rock Hill, Real Estate Rock Hill SC, Real Estate South Carolina, Real Estate SC, Rock Hill Real Estate, South Carolina Real Estate, Home for sale Rock Hill, Homes for Sale Rock Hill, Homes for Sale South Carolina, Home for Sale Rock Hill, New Listings Rock Hill, Realtor Rock Hill, Rock Hill Realtor, Rock Hill Realty, Realty Rock Hill, Real Estate Brokerage Rock Hill, Rock Hill Real Estate Brokerage, Just Listed Rock Hill, Rock Hill Homes Just Listed, Rock Hill Commercial, Rock Hill Investment, Real Estate, Real estate agent, real estate broker, real estate investor, real estate investing, real estate life, real estate for sale, Real estate expert, home for sale, house for sale, property for sale, just listed, house hunting, house hunt, new listing, million dollar home  Charlotte homes for sale, homes for sale charlotte, charlotte nc homes for sale, homes for sale fort mill sc, homes for sale Rock Hill, homes for sale Matthews nc, homes for sale Matthews, homes for sale waxhaw NC, homes for sale Indian land sc, homes for sale York sc, homes for sale York, homes for sale fort mill, homes for sale chester, homes for sale waxhaw, homes for sale Pineville, homes for sale clover sc, homes for sale Ballantyne nc, homes for sale chester sc, homes for sale clover, homes for sale Ballantyne, homes for sale Indian land

With home prices softening, some are concerned that we may be headed toward the next housing crash. However, it is important to remember that today’s market is quite different than the bubble market of twelve years ago.

Here are three key metrics that will explain why:

  1. Home Prices
  2. Mortgage Standards
  3. Foreclosure Rates

HOME PRICES

A decade ago, home prices depreciated dramatically, losing about 29% of their value over a four-year period (2008-2011). Today, prices are not depreciating. The level of appreciation is just decelerating.

Home values are no longer appreciating annually at a rate of 6-7%. However, they have still increased by more than 4% over the last year. Of the 100 experts reached for the latest Home Price Expectation Survey94 said home values would continue to appreciate through 2019. It will just occur at a lower rate.

MORTGAGE STANDARDS

Many are concerned that lending institutions are again easing standards to a level that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.

The Urban Institute’s Housing Finance Policy Center issues a quarterly index which,

“…measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”

Last month, their January Housing Credit Availability Index revealed:

“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market.”

FORECLOSURE INVENTORY

Within the last decade, distressed properties (foreclosures and short sales) made up 35% of all home sales. The Mortgage Bankers’ Association revealed just last week that:

“The percentage of loans in the foreclosure process at the end of the fourth quarter was 0.95 percent…This was the lowest foreclosure inventory rate since the first quarter of 1996.”

Bottom Line

After using these three key housing metrics to compare today’s market to that of the last decade, we can see that the two markets are nothing alike.


NextHome Platinum Advantage is a progressive real estate company with cutting-edge Thinking, award-winning real estate Marketing, driven by Technology and a Client-First attitude!


NEXTHOME PLATINUM ADVANTAGE
(803) 324-NEXT (6398)
1048 OAKLAND DRIVE ROCK HILL, SC 29732

NextHome Platinum Advantage on Facebook NextHome Platinum Advantage on Google Plus NextHome Platinum Advantage on LinkedIn NextHome Platinum Advantage on Twitter NextHome Platinum Advantage on YouTube NextHome Platinum Advantage Realty on Pinterest NextHome Platinum Advantage on Instagram NextHome Platinum Advantage Realty on Yelp!
Back
Lisa Renee BakerLisa Renee Baker
REALTOR/BROKER NC & SC, CEO of NextHome Platinum Advantage