Are We Headed For Another Real Estate Bubble?
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Nope. There is fear in the air these days in the world of real estate. Here in Phoenix, our market has stabilized and home prices are appreciating at a healthy rate. Demand is high and all is good in the land (except for the luxury market!). So why are folks afraid and another crash? There are some HUGE differences between what is happening now, and what happened in 2005. A combination of: 1. Loose lending practices 2. Risky mortgages 3. Poor appraisal practices 4. Unnaturally high appreciation rates (as high as 45% annually) 5. Way too many vacant homes set the stage for a rapid deceleration of home prices. When investors looked at their portfolio of vacant homes in which often invested NONE of their own money, the obvious decision for them was to dump the homes, further decelerating home values. YIKES! These days we have strict lending and appraisal practices to protect us, vested home owners, and very few vacant homes so even if home home prices decline, homeowners have equity so they won't get stuck. If you have any questions or concerns. let me know! You know where to find me! Kristin LaVanway 480-282-7464 Kristin@HereInPhoenix.com Music by: "Fretless" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0 http://creativecommons.org/licenses/by/3.0/
Comments
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phx in a bubble don't be a sucker
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This is why she's wrong, lowest home ownership in decades means home prices vs salaries HAVE NOT kept in balance.
There is tons of foreign money being dumped into real estate blowing up prices. As they cash out prices will crash. It's already happening.
Do you know when a realtor is lying? Their lips are moving. Why would anybody take advice from a realtor when it's in their best interest to see prices inflate? -
This is got to be the worst analysis that I ever heard ! What if deflation got really hight on the next recession we about to hit ! What if interest rates goes as high as 17% like the recession of 91 if banks are not making money and collapsing like we are seen now .. Educate your self and stop selling false dreams miss !
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Don't feel sorry for the people who lost there homes, they knew they could not afford it, but were looking for a quick buck, they should not look at a home as an investment, its a place to live in.
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Salary's are still not high enough for the average working person to afford 300K-im hoping no bubble, but the realtor who sold us our home thinks it will bust again, builders are greedy
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Another really informative and well done video.
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