{"id":11779,"date":"2019-07-26T16:52:04","date_gmt":"2019-07-26T16:52:04","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=11779"},"modified":"2019-07-26T16:52:04","modified_gmt":"2019-07-26T16:52:04","slug":"3-reasons-the-housing-market-is-not-in-a-bubble","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2019\/07\/26\/3-reasons-the-housing-market-is-not-in-a-bubble\/","title":{"rendered":"3 Reasons The Housing Market Is NOT In A Bubble"},"content":{"rendered":"<p class=\"p1\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-11780\" src=\"https:\/\/woodriverweekly.com\/wp-content\/uploads\/2019\/07\/20170511-STM-ENG-300x225.jpg\" alt=\"\" width=\"300\" height=\"225\" \/>With housing prices appreciating at levels that far exceed historical norms, some are fearful that the market is heading for another bubble. To alleviate that fear, we just need to look back at the reasons that caused the bubble 10 years ago.<\/p>\n<p class=\"p3\"><span class=\"s1\">Last decade, demand for housing was artificially propped up because mortgage-lending standards were way too lenient. People that were not qualified to purchase were able to obtain a mortgage anyway. Prices began to skyrocket. This increase in demand caused homebuilders in many markets to overbuild.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Eventually, the excess in new construction and the flooding of the market with distressed properties (foreclosures and short sales), caused by the lack of appropriate lending standards, led to the housing crash.<\/span><\/p>\n<p class=\"p5\"><span class=\"s1\"><b>Where we are today&#8230;<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">1. If we look at lending standards based on the Mortgage Credit Availability Index (www.tinyurl.com\/tws-mca) released monthly by the Mortgage Bankers Association, we can see that, though standards have become more reasonable over the last few years, they are nowhere near where they were in the early 2000s.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">2. If we look at new construction, we can see that builders are not \u201coverbuilding.\u201d Average annual housing starts in the first quarter of this year were not just below numbers recorded in 2002-2006, they are below starts going all the way back to 1980.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">3. If we look at home prices, most homes haven\u2019t even returned to prices seen a decade ago. Trulia just released a report (www.tinyurl.com\/tws-truliareport) that explained:<\/span><\/p>\n<figure id=\"attachment_10688\" aria-describedby=\"caption-attachment-10688\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-10688\" src=\"https:\/\/woodriverweekly.com\/wp-content\/uploads\/2019\/03\/mathieu-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" \/><figcaption id=\"caption-attachment-10688\" class=\"wp-caption-text\">Anna Mathieu<br \/>Realtor\u00ae, Associate Broker, GRI, MBA<br \/>This Year\u2019s Winner of the Windermere Cup for Outstanding Performance<br \/>Windermere Real Estate\/SV, LLC<br \/>(208) 309-1329<br \/>AnnaMathieu@Windermere.com<br \/>5b-realestate.com<br \/>To subscribe to the Better Homeowners newsletter:<br \/>tinyurl.com\/y8koftym<\/figcaption><\/figure>\n<p class=\"p3\"><span class=\"s1\">\u201cWhen it comes to the value of individual homes, the U.S. housing market has yet to recover. In fact, just 34.2 percent of homes nationally have seen their value surpass their pre-recession peak.\u201d<\/span><\/p>\n<p class=\"p5\"><span class=\"s1\"><b>Bottom line<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Mortgage lending standards are appropriate, new construction is below what is necessary, and home prices haven\u2019t even recovered. It appears fears of a housing bubble are over-exaggerated.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With housing prices appreciating at levels that far exceed historical norms, some are fearful that the market is heading for another bubble. To alleviate that fear, we just need to look back at the reasons that caused the bubble 10 years ago. Last decade, demand for housing was artificially propped up because mortgage-lending standards were [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11781,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[64,38],"tags":[],"class_list":["post-11779","post","type-post","status-publish","format-standard","has-post-thumbnail","category-better-homeowners-news","category-sponsored"],"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/11779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=11779"}],"version-history":[{"count":0,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/11779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/11781"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=11779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=11779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=11779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}