The house is up fo sale

[George Cantstandya]

(10-12-2021, 12:47 PM)fredtoast Wrote: And if the pandemic stopped people from wanting to move then that number would be dropping.

I am pretty sure Colorado has been growing for years now and that growth did not drive up housing prices like we are seeing right now.

Are you in the real estate business?  One of my best friends is a mortgage broker in Bailey.  LeaderOne Financial.

From my understanding of this "bubble" is that there is indeed a shortage of houses for sale due to few reasons.  One there are not a lot new houses being built.  Two due to Covid banks started lowering interest rates to attract buyers during a time when people were afraid of buying.  Those lowered rates increased the amount of buyers. 

The 2008 crash had lot going on as I understand it.  There were a lot of houses being built prior to 2008 and and banks were trying to cash in on the over supply of houses.  Often handing out subprime mortgages to people that would not normally qualify for a home loan.   A lot of them were ARM loans given to people that didn't understand how they work.   Then when the market crashed the people that signed into those bad loans found themselves in a bad situation while the banks that approved them got bailed out.  

This is different this time.  Banks are much more conservative about the home loans they approve.  Now it is a housing shortage instead of an over supply 2008 and prior.  But as I mentioned earlier and linked, nation wide 24% average increase in home value since 2019.  That's not really a big bubble and as the article I linked earlier, it seems it will self correct.  

On average a home appreciates around 3% per year depending on location. So even if buying a bit over now in ten years there should be no loss.