Lately, when I tell people I meet that I work in real estate, they answer me with a sympathetic look and excuse me for the current state of the market.
The people of Huntsville, that must stop.
The “Real estate recession!”, “Global sales are going through a devastating recession!”, “The real estate recession!”. Even if the real estate market is indeed a tragic situation as people think, we forget one thing: Huntsville is unique.
The city of Huntsville seems to be the exception to the rule in many cases, and the real estate market is no different. I would like to take a moment to dispel some myths about misunderstanding from materializing.
Myth n. 1: house fell sharply, resulting in sellers losing capital.
Reality: According to the North Alabama Multiple Listing Service (NALMLS), Huntsville / Madison area has increased by 5% since 2006 and by almost 20% since 2004.
Myth n. 2: the total number of home sales decreased.
Reality: from 2006 to 2007, the number of home sales. By two percent This figure is somewhat alarming compared to the overall situation of home sales since 2004, which has increased by 18.5%.
Myth n. 3: The Huntsville property market is down, in line with national real estate trends.
Reality: The volume of dollars on the lists has increased by 4% since 2006, 17% since 2005 and 45.4% since 2004. It’s not exactly the recession that scares everyone.
Now that we’ve released the truth about the Huntsville real estate market, let’s take a look at the sub-prime mortgage market.
The collapse of subprime loans has attracted a lot of attention. What type of person usually asks for a subprime loan? The guy who can not qualify for a loan. How to get a credit score below 620? A simple way is to get into debt. If you are in debt or already have debts, is it easy to make your interest payments extremely high on your subprime loan?
Subprime lenders have made a living by offering high interest rates, which are often paid for in the past, often on the basis that they – it is true – do not pay their bills. What made someone think that his mortgage would be different for these people? It’s a risk game for the lenders, who finally burned them. The instability of the concept of subprime should have been a blow for this game can not last indefinitely.
So, what percentage of mortgages does the subprime market include? According to Freddie Mac, about five percent. Are the subprime borrowers in the right, so right? What percentage of these borrowers is delinquent? In the second quarter of this year, the default rate was 14.82%. So, in reality, there is a “crisis” between 14.82% of the 5% of borrowers. This translates to less than 1% of all homeowners. 0.7 percent to be exact. Dennis Kucinich at the 2004 presidential primaries – it is now a crisis.
So, what does this mean for Huntsville? It depends. If everyone continues to run in fashion, the fall of the sky, this will certainly result in a lack of confidence on the part of the purchaser, likely to cause a real decline in the real estate market. How can we stop this? Huntsville, Huntsville, United States.