Another Meltdown?

This week our Chief Economist took a deep dive into the numbers to examine the current health crisis versus the housing crisis of 2008.

The reason why? People wonder if we are going to have another housing meltdown nationally and going to see foreclosures and short sales dramatically increase.

It turns out that the numbers show that today’s housing environment is quite different than 2007, right before the housing bubble burst.

Specifically, homeowners are in a vastly different situation with their mortgage compared to the pre-Great Recession’s housing meltdown.

In addition to much higher credit scores and much higher amounts of equity compared to 2007, the most significant difference today is in the amount of ARM mortgages.

Back in years leading up to the housing bubble, Adjustable Rate Mortgages were very prevalent. In 2007 there were just under 13 million active adjustable rate loans, today there are just over 3 million.

The number of those ARMs that would reset within three years was 5 million in 2007 compared to only 320,000 today.

It’s those Adjustable Rate loans resetting to a higher monthly payment that caused such a big part of the housing crisis back in 2008 to 2010.

Back then not only was people’s employment impacted, but many were facing increased monthly mortgage payments.

That’s why there were so many foreclosures and short sales in 2008 to 2010.

That is not the case today and one of many reasons why we don’t foresee a housing meltdown.

Posted on May 1, 2020 at 1:36 pm
Paul Hunter | Category: Buyer Tips, Friday Fun Facts, Homes for Sale, Investment, Real Estate, Seller Tips | Tagged , , , ,

Supply and Demand

Northern Colorado gave us a real-life economics lesson in January 2020.

Compared to one year ago…

  • Inventory was down 10% (Supply)
  • Homes under contract went up 31% (Demand)
  • Prices were up 5% (Result)
Posted on February 7, 2020 at 3:29 pm
Paul Hunter | Category: Friday Fun Facts | Tagged , , , ,

Windermere Symposium!

I was lucky enough to spend most of last week in Seattle for the yearly Windermere Conference called the Windermere Symposium. We were able to learn from many different masters in the business and economics, and will be able to use those tools and skills to help all of my clients even more efficiently!

And even more importantly, if you are planning on a move to anywhere in the Western United States, I have many different contacts that can help you or any friends or family members purchasing or selling outside of Colorado. If you need any help finding a Realtor in any of the 11 states we have a presence in I can help!

Posted on October 9, 2017 at 3:08 am
Paul Hunter | Category: Buyer Tips, Real Estate, Seller Tips | Tagged , , , , , ,

Should You Use A REALTOR?

Well of course you know my answer! 🙂 But there are more reasons than just having an advocate on your side during a transaction, and Inman News outlined a few of them. You can read the article below to see all of the reasons that you will have a better and smoother transaction with a REALTOR involved, but the big ones are presentation of your listing to the public, and the risk of the 40+ pages of paperwork that NEED to be done and managed properly during a transaction. If you have any questions about how these risks are mitigated by hiring me, give me a call or shoot me an email. Have a great day!

LINK TO INMAN ARTICLE ABOUT USING A REALTOR

Posted on August 21, 2017 at 1:33 pm
Paul Hunter | Category: About the area, Buyer Tips, Fort Collins Real Estate, Investment, Loveland Real Estate, Real Estate, Seller Tips, Wellington Real Estate, Windsor Real Estate | Tagged , , , ,