So, have you watched The Big Short yet? I just did! Pretty good depiction, if you ask me…
Being in the real estate foreclosure field when the foreclosure process was really ramping up, and then getting into real estate full time when the market was turning around, I feel like all that experience really taught me a lot of things. Maybe a lot of things for look for, as well.
I’ve had some clients ask me if we’re in a housing bubble because homes are selling pretty quickly, and the home values are rising. My opinion, not in Indy. Our prices are raising because of lack of supply, but a large demand. Economics tell us that prices rise in that sort of equation. We don’t have enough homes available for buyers looking. I like that prices are rising at a slower pace – slow growth is better. But, what do I know…
What I do know is that the Dodd-Frank has helped the mortgage industry (a buyer must actually show proof of income, two years worth of taxes, and lots of other good information to obtain a mortgage), and is also a pain (sometimes more government regulations aren’t actually a good thing).
Mortgage insurance is now required for any buyer not putting down twenty percent on their home purchase. You can also obtain a conventional loan with a minimum of five percent down, and then pay mortgage insurance (escrowed in your montly payment) until your loan to value ratio is 80% or lower. Options are good.
Did you know you can actually obtain down payment insurance now? You can pay an insurance company (check availability – not widely offered yet) a certain percentage of your down payment on a mortgage in a lump sum premium payment, and you can be covered up to seven years. During those seven years, if you have to sell, you get transferred, etc. and the value of your home drops, then your down payment is insured. Huh. Something to think about…
The market is very healthy right now. There is no signs of slowing down for me, personally, nor many of my colleagues. More inventory is needed to help even out the playing field for all the buyers out there, and to slow the rise of the home values.
It’s a seller’s market! If you are a possible seller, contact your favorite REALTOR at 317-480-7966 or firstname.lastname@example.org! 🙂
So, have you watched The Big Short? I just did!
By Jill Curtis, talktotucker.com/jill.curtis