Market Chill... Not a crash

Dated: September 12 2022

Views: 102

The market “Chill”…

 Don’t let the current market “chill” stop you from buying or selling a home…  You don’t need to lose sleep over the next housing crash.

 The 2007-2012 housing bust was not normal…  In the early-mid 2000’s lenders were giving loans to borrowers with poor credit, unstable employment (if at all), and no asset verification.  These borrowers were taking out loans with negative amortization or adjustable rates (ARMS). Many of these ARMS were locked for 2-3 years and then would adjust. Between 2004 and 2006 ARMS were about 35% of all loans.  Today ARMS are about 5%.  What happened in October 2007 there was a $50 billion adjustment.  More than 2 million ARMS jumped to higher rates. Many Americans saw their loan payments jump 25-35%.. 

 Today mortgage lending is much different… You must show proof of employment, bank statements, tax returns, and have good credit to get a loan. The average FICO score in February 2022 was 714.

 Home equity is at an all-time high!  In the first quarter of 2022 there was $27.8 trillion in home equity.  Mortgage leverage is at a record low.  In 2007-2012 many borrowers were up-side down in their homes and couldn’t afford them.

 Home prices and sales cooling a bit… Don’t believe all the hype and headlines, it’s still a great time to buy or sell a home.  Home inventory is relatively low, so prices are not likely to crash.

Blog author image

Matt Ebbighausen

Licensed Broker MN & WI.  Trusted Advisor for All Your Real Estate Planning.You can trust me, and I will always be honest and transparent. I've lived in the community for 40+ years and been s....

Latest Blog Posts

Market Chill... Not a crash

Posted by Matt Ebbighausen
September 12 2022
0 comments

The market “Chill”… Don’t let the current market “chill” stop you from buying or selling a home…  You don’t need to lose sleep over the

Read More

Protect your house: thieves already know it's Christmas

Posted by Terry Quinn
January 8 2021
0 comments

Sometimes at Christmas, you leave your house unsupervised for last-minute purchases. But what can you do to protect your home from thieves?According to the FBI website, in the Crime Clock section, a

Read More

Property Search

Contact Information

Address: 11935 West River Hills Drive
Burnsville, MN 55337
Phone: 612-656-1200
Phone: 952-457-9864

Search Blog

Our Bloggers

Matt Ebbighausen Posts

Matt Ebbighausen

1 Posts

Terry Quinn Posts

Terry Quinn

1 Posts