Real Estate Boom or Bust?


Real Estate Boom or Bust is the question i get every week.

I lived through the last crazy real estate cycle.  Where the market accelerated at a pace we had never seen before only to come down right in front of our eyes as we stood there in disbelief. I see a difference this time. With over 50 percent of the home sold in 2012-2015 being ALL CASH I am really not too concerned about a bubble. Those home buyers that did not buy all cash most definitely had to qualify for a loan this time around. The old way of approving someone was,  if you could fog a mirror we will give you a loan. Rates are at record lows, home ownership is more affordable than renting , jobs although still slow are every day improving. Consumer confidence is on the rise. Having worked in the automotive industry for over 20 year I learned a somewhat predictable pattern. When car sales are doing well,  real estate is on its way up. Something about the human psyche and big purchases… When a person decides to buy a vehicle the mind goes into a big purchase process and fear is reduced or eliminated during the car buying process and the consumer says that was easy…. "lets buy a home". I have watched this phenomenon time after time. So have you checked lately how the car industry is doing? I did today… I just purchased a new vehicle. I'll share that process with you on a later date.