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July 15, 2021
The housing market is a main topic of conversation these days. You’ve probably heard many people talk about this being a bubble similar to the one in 2007. But it’s actually A LOT different. We like keeping you in the know here at Cottage + Key Realty so we’ve broken it down. Here are 5 differences between 2021 and 2007:
1. Down payments for mortgages are higher in 2021. In 2007 down payments were lower.
2. Mortgages are Fixed in 2021. They were Adjustable in 2007.
3. It’s harder to qualify for a mortgage in 2021 compared to the easy qualification process & low down payments in 2007.
4. Foreclosures are at a 15-year low as of 2020. (Not the case in 2007)
5. Low inventory & high buyer demand reduces any risk of overbuilding in 2021’s market. (Which is a different story than in 2007.)As you can see from the 5 statistics above, it’s looking very different than the last “bubble” so that’s why the experts are saying this isn’t a bubble at all!
Have more questions? Reach out to Charlene, our Managing Broker here at Cottage + Key Realty!