Posts from April 11th, 2021
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PATRICK SAYS, 'RELAX,' IN WORRYING ABOUT A HOUSING MARKET CRASH
15 years ago, the housing market crashed, causing a worldwide recession. While that history is in our not-so-distant past, many are correlating the same things we are seeing in our current market conditions as a reason to push the panic button. Above list price sales, new construction delays, and low-interest rates point towards a Hindenburg-type crash but listen to Patrick and just, "Relax." While today's market cannot sustain itself, a crash equivalent to 2006 is unlikely, and here's a few reasons to help you remove the paper bag from your face.
LACK OF LOOSEY GOOSEY LENDING STANDARDS
While money is cheap right now, lenders are not embracing the "anyone can get a loan" practices from 15 years ago. The practices that ultimately brought down banks and mortgage companies are not being leveraged in today's market. Standards for lending...