Oops! It’s been a while. Sometimes life gets in the way of your routine, but we have good stuff here to talk about. The number 1 question nowadays in real estate is are we in a bubble? There are several reasons why I don’t see this happening immediately.
1. Inventory: The availability of single family homes is still notoriously low. Additionally, there is so little new construction for purchasing condos and single-family homes, it will keep the property values high for years to come.
2. Underwriting: Residential mortgages, due to the pandemic, have reached a new level of caution. People are still being approved, but they are looking through every document with a fine-tooth comb.
3. Equity: Almost all residential property has equity that continues to grow every day. What this means is that even if we all had a 20% loss of equity in our homes today, we would still be in good shape. Very few properties would be underwater (meaning homeowners owe more than the property is worth).
4. Caution: Although unemployment is skewed by covid, federal and state unemployment will be listed in September, and the main cause of 2008 crash is that people started losing their jobs at a fast rate. By 2010, the unemployment figures were underreported because they did not count gig workers or self-employed.
Rates are still low! Our residential and commercial loan volume is up.
We are still putting people into houses and helping people sell their homes!
We can help you regarding all things real estate! Please contact us.
Have a safe day!
-Jim Riccardi
339-224-2919