Four big differences set the 2022 market apart from the 2007 crisis.
Recently, I’ve been getting asked, “Are we in a housing bubble like 2007?” Today I want to talk about some of the differences between today’s market and 2007. Here are four reasons why we’re not in that type of market:
1. Lending guidelines are stronger than ever. Back then, loose lending guidelines allowed people to get loans without any documentation or assurance that they could afford them.
2. Fewer people are using adjustable-rate mortgages. During the last crisis, lending institutions offered low interest rates for a time, and then payments went up based on the new rate.
3. Today’s buyers have much more equity. Back then, people purchased properties despite having little to no equity in their homes.
4. There are more cash buyers and qualified buyers. Today’s buyers have the capital and qualifications to make secure investments and not cause problems in the market.
If you have any concerns about the market or other questions, reach out to me by phone or email. I look forward to hearing from you.
