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This Week's Featured Listings
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1202 Hickory Ln,
Elkhorn, WI
$325,000
Welcome to your new home! Nestled on a half acre lot in Elkhorn, this ranch home offers plenty of space for entertaining. With 5 bedrooms, 3 full baths, and main level laundry, this home has everything you need and more. The finished basement features a full wet bar and plenty of room for your guests. And don't forget the deck and screened in sunroom... perfect for enjoying those summer evenings outside. Don't miss out on this one-of-a-kind property!
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N6340 County Line Rd
Sugar Creek, Wisconsin
$250,000
This freshly renovated 3-bedroom home on 1.57 acres is the perfect place to call home. From the fresh new floors to the deck and door, this house has been completely renovated and is ready for you to move in. The country setting surrounded by mature trees is a perfect place to relax and enjoy nature. And with a 2-car garage, you'll have plenty of room to store your vehicles and equipment.
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3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008
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With all the headlines and talk in the media about the shift in the housing market, you might be thinking this is a housing bubble. It’s only natural for those thoughts to creep in that make you think it could be a repeat of what took place in 2008. But the good news is, there’s concrete data to show why this is nothing like the last time.
There’s Still a Shortage of Homes on the Market Today, Not a Surplus
For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Supply has increased since the start of this year, but there’s still a shortage of inventory available overall, primarily due to almost 15 years of underbuilding homes.
The graph below uses data from the National Association of Realtors (NAR) to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 3.2-months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time, even though some overheated markets may experience slight declines.
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Mortgage Standards Were Much More Relaxed Back Then
During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home.
Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies.
The graph below uses Mortgage Credit Availability Index (MCAI) data from the Mortgage Bankers Association (MBA) to help tell this story. In that index, the higher the number, the easier it is to get a mortgage. The lower the number, the harder it is. In the latest report, the index fell by 5.4%, indicating standards are tightening.
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This graph also shows just how different things are today compared to the spike in credit availability leading up to the crash. Tighter lending standards over the past 14 years have helped prevent a scenario that would lead to a wave of foreclosures like the last time.
The Foreclosure Volume Is Nothing Like It Was During the Crash
Another difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans. The graph below uses data from ATTOM Data Solutions to help paint the picture of how different things are this time:
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Not to mention, homeowners today have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Today, many homeowners are equity rich. That equity comes, in large part, from the way home prices have appreciated over time. According to CoreLogic:
“The total average equity per borrower has now reached almost $300,000, the highest in the data series.”
Rick Sharga, Executive VP of Market Intelligence at ATTOM Data, explains the impact this has:
“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure.... We believe that this may be an indication that borrowers are leveraging their equity and selling their homes rather than risking the loss of their equity in a foreclosure auction.”
This goes to show homeowners are in a completely different position this time. For those facing challenges today, many have the option to use their equity to sell their house and avoid the foreclosure process.
Bottom Line
If you’re concerned we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your fears. Concrete data and expert insights clearly show why this is nothing like the last time.
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Want more? Check out our Buyer/Seller guides, or take a look at our vendor list
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Not what you're looking for? Feel free to reach out and I can set up a personalized search for you!
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What's happening this week?
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UPCOMING EVENTS
THURSDAY AT 11:45 AM
Veteran's Day Lunch
First Lutheran Church and School
The lunch begins at 11:45 with the program about 12:30. All veterans and guests are welcome. Please RSVP for the lunch by calling the school 262-723-1091.
FRIDAY AT 10 AM – 4 PM
Christmas in the Country
Apple Barn Orchard & Winery
Local Artisans, Apple Barn Fruit Wines, Apple Cider, Baked Goods, Holiday Decor, Gifts, Donuts, Candles, Pantry, Cheese, Local Honey and More!
FRIDAY AT 7 PM – 10 PM
Pat's Brew & Que - Bree Morgan - SOLO
Pat’s Brew & ‘Que
Friday night fun at Pat's Brew & Que, and a Birthday celebration as well for Kathy's son Carl! Fun starts at 7pm! Bree has opened for country music stars such as Martina McBride, Jo Dee Messina, Niko Moon, Joe Nichols and Craig Campbell, and has one studio album, “TRASH” under belt with another on the way. Morgan also has attained multiple songwriter awards through the local Wisconsin scene.
SATURDAY AT 2 PM
Mega Meat Raffle Fundraiser [Fall 2022]
Silver Lake Inn
The Rustic Road Riders are hosting their Fall 2022 Mega Meat Raffle at the Silver Lake Inn.
All proceeds from the Fall 2022 Mega Meat Raffle will be going to the Rustic Road Riders to help us continue giving back to our community.
Raffle rounds start at 2pm! Our meat raffles just keep getting bigger with more and more choices! Get there right at 2pm to see all the meats!
SATURDAY AT 12 PM – 5:30 PM
Autumn Fest
355 N Pine St, Burlington, WI 53105, United States
Come downtown to Wehmhoff Square Park from 12:00 (noon) to 5:30 pm for ribs, vendors, music and fun!! Come for Spooky City - stay for the Autumn Festival
Hope you have a great week!
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Cameron Loback
262-749-1060
CameronLoback@RealtyExecutives.com
Brandon Roeling
262-325-9596
BrandonRoeling@RealtyExecutives.com
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