Our market is incredibly strong, but it’s caused some people to worry.

As you probably already know, we’ve been enjoying an incredibly strong seller’s market for a while now. In fact, it’s so strong that some people are beginning to wonder whether we’re headed toward a housing crash like the one we saw in 2005.

Though I can’t see into the future, there are some things I can point to in order to put your mind at ease. First of all, 2005’s downturn was largely due to predatory lending practices. People who really should not have been able to secure a mortgage were getting approved anyway. We’re not seeing that now, thanks to a variety of policies that were enacted to stop these practices from reoccurring. For example, the lender is no longer able to reach out to the appraiser directly. Now, people have to use cash to make up the difference between a home’s value and its appraised value.

“The market is strong, but it’s not because of bad practices or other factors that would lead to a crash.”

On top of concerns about a potential crash, some people are wondering what will happen when the mortgage moratoriums are lifted. In Central Florida, we’re seeing that around 13% to 15% of FHA loans are considered “majorly delinquent” after 90 days. However, most of these people have equity and should be able to sell to get out from under their loan. New home construction is also down, so there’s a lot of pent-up demand that’s waiting to be fulfilled.

The market is strong, but it’s not because of bad practices or other factors that would lead to a crash. It’s simply a result of low supply and high demand. If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.