Wednesday, December 2, 2020 / by Jessica Nager
Are you concerned a housing bubble might be looming? In this post, I give you 3 reasons why the Phoenix Housing Market is nothing like the crisis we saw in 2005/2006. For more Phoenix real estate advice and tips on the current market, check out my youtube channel: https://www.youtube.com/channel/UCKwi5-5TiG3TIWWuY_GA8BA Reason # 1 - Rental Home Prices Are Rising Between 2000-2005 rental rates decreased as home prices increased. When home prices are increasing and rents are decreasing for the exact same home that is a strong signal of a real estate bubble. Today renters face stiff competition as rental rates are on the rise. Reason # 2 - Types of Buyers During the 2005 crisis, anyone could purchase multiple homes for little to no money down. Our buyers out there today are qualified with solid credit scores and the desire to live in that residence long term. Investors today are purchasing with all cash and typically 20% down, so we are seeing a lot of real money poured into the market. Reason # 3 - Foreclosure & Lending Practices When the market collapsed homeowners could no longer afford these homes and when the pandemic set in there were thoughts of millions of people unable to make their home payments but lawmakers have taken appropriate steps with options for homeowners - halting foreclosures, loan deferments to name a few. In fact, current statistics show that people are paying off their homes, with more equity, now more than ever. I hope you found this information useful. If you have any questions, I am always happy to help. Thanks for reading!