No “Bubble” Coming in the NOVA/DC area
This sentiment from me is likely not new to those of you who regularly follow my blogs, but today I’ve got some incredibly reassuring numbers to enlighten you with. For starters, let’s look at the current loan and equity positions of Americans.
- Seriously delinquent loans are at the lowest point ever in the 43 years that statistic has been tracked!
- 38.7% of homeowners have no mortgage at all
- An additional 30% have an equity position of greater than 50%
- A mere 2.1% have negative equity.
And those are national statistics. The regional ones are even stronger. We continue to have fewer than 10 distress sales in the entire NOVA region, as has been the case for many months now.
Yet there continues to be a disconnect between the realities of the market and the public perceptions as surveys continue to show an increasing belief that prices will be coming down in the region (the most recent survey I saw said that 37% thought that). The problem with getting that wrong, in either direction, is that it leads to improper decision making. If you thought that a year ago for instance and sat on the sidelines, or decided you didn’t want to compete, you are now faced with both increased prices and rates.
As always I am here to provide accurate information and counsel so please call if you have any questions!
It’s a good life.
Chris
