No This Is Not The 2005 Bubble All Over Again

Dated: 09/05/2017

Views: 79

Have you heard anyone say recently that this market is just like the 2005 housing bubble?  I have... and it's not, in case you were wondering. 

Now, if you need actual proof, let me enlighten you.  In 2005, the bubble was dominated by a lot of 100% financing, and very little cash transactions. There were interest only loans flying off the shelves. Appraisers were.... eh hem.... being pressured by commissioned parties. People were getting loans based on lies, like 'sure, I plan to live there as my primary' or 'of course I make a million dollars a year, trust me'.  Financing was a joke, sales were happening with zero days on market and sometimes same day turn arounds. It was insanity. 

Fast forward to today. In the 2017 housing market, we're looking at individuals buying homes to live in, using down payments as equity (not the promise of tomorrows value). We have cash investors putting money into homes to improve their quality, not just passing a home off to the next warm body to show up. Appraisers are managed and heavily regulated. Loans are highly regulated, and in fact, there are waiting periods in place now to make sure that the buyer is 'really sure'. Our job growth in the valley is not based on real estate, construction and cyclical industries such as tourism. Instead, we have job growth based on health fields, like Banner Hospitals and the urgent cares moving in, Financial fields are more prominent with people investing money instead of buying toys with all of their false equity, and of course our ever growing Tech industries, which will always grow and improve.  (unless robots take over and erase us, but then the housing market won't matter)

Still don't believe me? Well, how about some hard data? Take a look at a few simple charts below, courtesy of The Cromford Report, showing the real data trends in the housing market over the last decade and beyond.  
If you would like some information on your area, specifically, give me a call or email and I would be happy to send you information on your city, zip or neighborhood. 
Homes that sold in 1 day or less

Homes that have sold over listing price

Homes that sold AT listing price

Homes that sold below the listing price

Blog author image

Serena Jones

I'm an Arizona native who went from being a stay at home mom and partner in crime to my General Contractor husband, to real estate agent, in a flash. Over the last few years, my constant thirst to kno....

Latest Blog Posts

Selling Your Home 3 Times To The Same Buyer

Most people, when looking to sell their home do all the basics... They clean, they declutter, they may paint the bright green room. They will put the candles out, and make sure all the beds are.

Read More

Do I Need An Appraisal Before I List My Home

The simple answer is no. But you were probably looking for more than that, right?What is an Appraisal?  Well, it's an opinion of price. When you're getting your home ready to sell,

Read More

How To Choose A Home Inspector

Real Estate Inspections can be a very sticky subject at times. It's important that you know, not all inspectors are the same. We're asked all the time for a "good inspector". I'd like to ask you...

Read More

What Is Escrow

Recently, I had a little disagreement with an Escrow rep. In this particular case, my buyers lender required that a bill be paid out of escrow. If my buyer had made a payment directly, it could take

Read More