{"id":385,"date":"2018-11-30T00:08:36","date_gmt":"2018-11-30T00:08:36","guid":{"rendered":"http:\/\/renwre.info\/2018\/11\/30\/further-proof-its-not-2008-all-over-again\/"},"modified":"2018-11-30T00:08:36","modified_gmt":"2018-11-30T00:08:36","slug":"further-proof-its-not-2008-all-over-again","status":"publish","type":"post","link":"http:\/\/renwre.info\/?p=385","title":{"rendered":"Further Proof It\u2019s NOT 2008 All Over Again"},"content":{"rendered":"
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\"Further<\/p>\n

Home sales numbers are leveling off, the rate of price appreciation has slowed to more historically normal averages, and inventory is finally increasing. We are headed into a more normal housing market.<\/span><\/p>\n

However, some are seeing these adjustments as red flags and are suggesting that we are headed back to the same challenges we experienced in 2008. Today, let\u2019s look at one set of statistics that prove the current market is nothing like the one that preceded the housing crash last decade.<\/p>\n

The previous bubble was partially caused by unhealthy levels of mortgage debt. New purchasers were putting down the minimum down payment, resulting in them having little if any equity in their homes.<\/p>\n

Existing homeowners were using their homes as ATMs by refinancing and swapping their equity for cash. When prices started to fall, many homeowners found themselves in a negative equity situation (where their mortgage was higher than the value of their home) so they walked away which caused prices to fall even further. When this happened, even more homeowners found themselves in negative equity situations which caused them to walk away as well, and so a vicious cycle formed.<\/p>\n

Today, the equity situation is totally different. According to a new report<\/a> from ATTOM Data Solutions<\/em> more than 1-in-4 homes with a mortgage<\/em> have at least 50% equity. The report explains:<\/p>\n

\n

\u201c\u2026nearly 14.5 million U.S. properties were equity rich \u2014 where the combined estimated amount of loans secured by the property was 50 percent or less of the property\u2019s estimated market value\u2026The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage.\u201d<\/em><\/p>\n<\/blockquote>\n

In addition, according to the U.S. Census Bureau, 30.3% of homes in the country have no mortgage<\/a> on them.<\/p>\n

\"Further<\/a><\/p>\n

Almost 50% of all homes have at least 50% equity.<\/strong><\/h4>\n

If we take both numbers, the 30.3% of all homes without a mortgage and the 17.9% with at least 50% equity (25.7% of the 69.3% of homes with a mortgage), we realize that 48.2% of all homes in the country have at least 50% equity.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Unlike 2008, almost half of the homeowners in the country are sitting on massive amounts of home equity. They will not be walking away from their homes if the housing market begins to soften.<\/p>\n<\/div>\n

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Home sales numbers are leveling off, the rate of price appreciation has slowed to more historically normal averages, and inventory is finally increasing. We are headed into a more normal housing market. However, some are seeing these adjustments as red Continue reading Further Proof It\u2019s NOT 2008 All Over Again<\/span>→<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/posts\/385"}],"collection":[{"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=385"}],"version-history":[{"count":0,"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/posts\/385\/revisions"}],"wp:attachment":[{"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=385"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}