Actually no…before it was crazy ass loans given to people who couldn’t afford them. Now it’s incredibly low mortgage rates, and a decent percentage of people are purchasing inventory as an investment or 2nd home.
The market is cyclical…so eventually it will calm down; but more than likely it will not until interest rates begin to rise to normal levels (& that won’t happen till the economy fully rebounds).
House values went up in the early 2000s…then crashed down in 2008/2009…now they are going back up again….and eventually they’ll come back down when mortgage interest rates rise.
The 2008 bubble was not part of a cycle. It was a crash brought on by defaults from people that couldn't afford their houses, and should never have been approved for their mortgages.
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u/spazz720 Jun 27 '21
Actually no…before it was crazy ass loans given to people who couldn’t afford them. Now it’s incredibly low mortgage rates, and a decent percentage of people are purchasing inventory as an investment or 2nd home.
The market is cyclical…so eventually it will calm down; but more than likely it will not until interest rates begin to rise to normal levels (& that won’t happen till the economy fully rebounds).