Today, I want to talk about some things that I’ve noticed that’s going on in the real estate market. These things are making me think of the downturn of the real estate market in 2005, 2006 and 2007.
- There is a shortage of affordable deals.
- Pricing is continuing to increase.
- The average family can’t afford properties when the prices keep escalating.
- Sellers are turning down full-price offers because they know someone will come tomorrow with a higher offer.
- Inventory is short.
- Building projects keep going on, adding to the inventory of new homes.
- Stated-income loans (liar loans) don’t make the borrower prove their income, and they are back.
But this type of a market can’t continue to escalate. Loans that are too high or are for more than what someone actually makes can easily go into default. I hope my suspicions are wrong. But I want you to proceed with caution to avoid losing everything they have if there is a decline.
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