Here are 3 Reason Why We Aren’t in a Housing Bubble

I’m often asked by home buyers and sellers if we are in a housing bubble here in the Charlotte market. In the 20 years I’ve been in business I’ve seen lots of market up’s and down’s and here’s my take on what’s happening now, here.

Home prices are being driven up with bidding wars and a lack of inventory, and that can be scary. So scary in fact that it may discourage some folks from looking to buy a home now, afraid that we are in a housing bubble.Here are 3 reason that this market is TOTALLY DIFFERENT than the housing bubble we experienced just over a decade ago…

𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝘀𝘂𝗽𝗽𝗹𝘆 𝗶𝘀 𝗲𝘅𝘁𝗿𝗲𝗺𝗲𝗹𝘆 𝗹𝗶𝗺𝗶𝘁𝗲𝗱 Inventory of homes for sale is currently running at less than 1 month, a historic low. A healthy inventory is about 6 months, and in 2008 we were actually up to as high as 11 months inventory.

𝗛𝗼𝗺𝗲𝗯𝘂𝘆𝗲𝗿𝘀 𝗮𝗿𝗲 𝗺𝗼𝗿𝗲 𝗰𝗿𝗲𝗱𝗶𝘁𝘄𝗼𝗿𝘁𝗵𝘆 In 2008, when the housing market crashed, mortgage standards were at an all time low for credit scores and down payment requirements, as well as proving income and assets to purchase. Current guidelines are much stricter, making the borrowers more financially secure.

𝗛𝗼𝗺𝗲𝘀 𝗵𝗮𝘃𝗲 𝗲𝗾𝘂𝗶𝘁𝘆 Homeowners were pulling out equity back in 2008, causing many to be upside down. This time around equity levels are extremely high, meaning that homeowners could see values decline slightly without concern.

I’m available to share with you how this is a great time to consider buying or selling a home, especially as values continue to increase. Reach out to me anytime!

Chrystal Safari Roy | Leading You Home

Chrystal Safari Roy Chrystal@TheSafariGroup.comText 704.562.1030

#CharlotteRealEstate#realestate#homebuyingtips#realestateadvice #TheSafariGroup.com#BuildYourWealthThroughRealEstate

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Navigating a Charlotte Area Short Sale

Prior to listing a property for sale, the seller must document hardship and the inability to pay the promised mortgage to receive approval from the lending bank to allow a short sale. Those documents must be updated monthly. Once the property is listed, showings and offers begin.

From a buyer’s point of view, once he’s decided to make an offer, the homeowner accepts, rejects or negotiates the offer. If and when all terms are agreed upon, the home goes under contract with the homeowner. The Offer to Purchase and Contract package is sent to the lender’s loan liquidation department along with a proposed HUD or settlement statement.

From there, an asset manager, sometimes called a file manager, is assigned. That can take hours to days, depending upon the bank’s volume of sales in the short sale department. Once the asset manager is assigned, all paperwork is forwarded and reviewed. Back up offers from other interested sellers are also received and submitted for consideration.

If all goes well, within 30 days or so, the investor who purchased the loan from the bank reviews the Offers/Contracts and decides whether or not he also accepts the terms offered. The bank then communicates the decision back to the seller who lets all parties know the verdict.

Behind the scenes, the bank must also eliminate or settle any second mortgage or other liens to make way for a clear title to be transferred to the buyer. Title companies won’t issue a title policy assuring no one else can step forward to claim ownership with any money still owed.

It can take as many as long as 6 months to iron out all the details. At any time, until the day and time of closing when the documents are signed and recorded, the investor may accept any other offer and bump the buyer’s to a null position.

Because many buyers don’t stay in the game for the duration, and for other reasons, fewer than 40% of short sales close. The property then becomes a foreclosure owned outright by the bank. It’s negotiated simply and can close in 15 days for a cash buyer, 30 days for conventional loan, and 45 days for an FHA loan.

It takes a special kind of dedicated buyer to pass by all other listings and continue hammering through a short sale for weeks and months at a time with no update from the bank. It you think that’s you, let’s talk. There are many great deals out there. Call me to discuss your big picture. 704-562-1030