1/18/2024 0 Comments Housing bubble 2022![]() He said given the stabilization of home prices, even with the spike of interest rates, many homes are more affordable now than in the spring market where they were selling, in many cases, for a few hundred thousand dollars over the asking prices. Seasoned Realtor's perspectiveįred Pizzi, longtime Realtor with Berkshire Hathaway HomeServices Commonwealth, thinks the market is leveling off and properties are not appreciating as dramatically as they were in the past. I still believe the housing market will remain steady with a small bump down if any,” said Brown. “This is just a ballpark but illustrates the difference in qualifying for a mortgage. Previously, with rates in the high 2% range, you needed about $98,000 gross income. The underwriting of loans is a lot tougher and more strict,” he said.Īccording to Brown, depending on a person’s debt and credit score, to afford a $500,00 mortgage, you currently need about $115,000 gross income. “Since the last crash, all the aggressive financing options such as no income verification, no document loans and poor credit loans have been eliminated. “I do think house prices will level off and may even come down a small bit, but not crash,” said Brown. He also doesn’t think the housing market will bubble like the last crash. Guaranteed Rate senior loan officer Jim Brown has been in the mortgage business for 38 years. There are people with a lot of cash and they are driving the prices,” he said. Unlike 2007, he said there is not a lot of sub-prime lending anymore. The increase in interest rates and possible further increase, will help cool down the market and maintain price stability," said Epstein. Buyers are probably good risks, so there shouldn't be the crash we saw in 2008. "Bottom line, I expect the increase in housing prices to taper off. ![]() Economist's perspectiveĮconomist Roy Epstein, former adjunct professor of finance at Boston College, does not think there will be another crash like 2007. Meanwhile, the year-to-date median single family home price increased 9 percent on the same basis to $553,000, according to The Warren Group’s July report. 16, 2022), an 11.8% decrease from the first seven months of 2021. Year-to-date there have been 29,819 single-family home sales in Massachusetts (as of Aug. Low inventory is another reason the real estate market is cooling off, according to Tim Warren, CEO of The Warren Group. "Inflation seems to be slowing down," said Norton. However, if the Federal Reserve raises rates even more, she said that will definitely have a dampening affect on things, but she doesn't think they will do that. We will see year over year increases in median prices, but instead of 15 to 20 percent over last year, it will be like 5 or 10 percent," said Norton. ![]() "We will see median home prices appreciate less quickly. She believes the rising interest rates are affecting the market, causing some buyers to wait and save money and sellers to wait because they don't know what they will afford to buy or where to move to. ![]()
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