Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Politics & MoneyReal Estate

The housing market won’t crash in 2021. Here’s why

Appraisal gaps and bidding wars have people really worried

home sales

A recent article published by CNBC showed that internet searches for the term “housing crash” had gone up 2,450% in the past month. A lot of folks are concerned about a housing market crash. They may be wishing for it, or they may be fearing that it will happen — but they are thinking about it.

I understand the concern. A home is your shelter. A home is not like bitcoin or even holding a piece of gold in your hand. You don’t need either of those to conduct the business of your everyday life. But when the housing bubble burst in the mid-2000s, many Americans were seriously impacted because their house was not only their shelter; it is also tied to work, their kid’s school, and the general well-being of their family. It is part of who you are.

This is why I stress that housing is the cost of shelter to your capacity to own the debt, not an investment. Real estate investors buy to flip a home for a profit or get rental income, but they’re not the majority of buyers in America each year. For the majority of mortgage holders, the loan is the cost of shelter. If taking a mortgage was an investment first and foremost, then the home we purchase would be the one that offered the most incredible long- or short-term return on investment. It would not be the home with the best floor plan, distance to work, how we feel about the city, or the one closest to the school of choice for our children. 

Last year and this year have been crazy for real estate. A year ago, I was trying to convince people that the housing market wasn’t going to crash and that if they just waited until July 15 — when the June numbers would be published — they would see real estate start to rebound. People were still buying homes during the pandemic. Ordinary people needed shelter and wanted to take advantage of low mortgage rates and less competition. Think about all those Americans who bought homes to live in last year who are now grateful they don’t have to deal with this unhealthy housing market for buyers.

It’s a seller’s marketplace, but does that make it a bubble?  

This content is exclusively for HW+ members.

Start an HW+ Membership now for less than $1 a day.

Your HW+ Membership includes:

  • Unlimited access to HW+ articles and analysis
  • Exclusive access to the HW+ Slack community and virtual events
  • HousingWire Magazine delivered to your home or office
  • Become a member today

    Already a member? log in

    Most Popular Articles

    Fannie Mae, and the housing market’s inflation problem

    Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

    Jun 16, 2021 By

    Latest Articles

    Doug Duncan and the housing market’s supply conundrum

    The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

    Jun 18, 2021 By
    3d rendering of a row of luxury townhouses along a street

    Log In

    Forgot Password?

    Don't have an account? Please