Is the Housing Market Stable Right Now?
Filed under: Temecula Real Estate
If you are thinking about buying or selling a home, then you probably have a lot of questions about the current real estate market conditions. A stable housing market is important because it will affect the price of the home as well as the length of time that it takes to sell.
In my opinion, housing is stable right now. These are a few reasons why:
Financing Options to Buy a Home
The current housing market is very different compared to the trends that were happening from 2003 – 2008. One of the big differences is financing. Everyone knows that it is difficult to get a home mortgage right now, especially since there aren’t any more “no-document” loans. Only fully amortized loans are offered, and the banks are careful to be sure that you aren’t putting yourself in a bad position.
If the loan is fully amortized, then it means that the bank is going to force you to pay principle back to the loan every month. Previously, homeowners were using interest-only loans, which resulted in situations where they were upside-down on the properties that they owned. After the housing market crash, the banks changed their approach to protect homebuyers by avoiding these problems.
Another reason the mortgages are more stable is that only fully documented loans are offered. So, the bank is going to look at your tax returns and pay stubs. It is likely that the bank will contact your employer to make sure that you will be able to continue paying the mortgage. These steps are designed to verify that your income number on your application is correct.
Why Do Mortgage Practices Matter?
The reason these details matter is because the mortgage industry has a direct impact on the real estate industry—they go hand-in-hand. Steady mortgage practices mean that housing isn’t going to shoot rapidly up in price like it did before. At the same time, the prices won’t fall quickly either. The market is stable, which means that things are only going to grow now with the pace of inflation.
Do you want to learn more about the Temecula real estate market? Send me an email or a text anytime, and I will be available to help. Contact me today: (951) 473-0390 or [email protected]