Leo Nordine

Has Sold Over 5400 Properties

Sorry, no bubble here

A lot of people are saying we’re in another real estate bubble, but the truth is not even close. 2016 could hardly be more different than 2006:

1. Inventory is extremely low.

2. Interest rates are the lowest ever, and will continue to drop.

3. All the loans funded in the last 8 years are quality (i.e. borrowers actually had to qualify and put money down).

4. Foreclosures are down 23% from last year, and the delinquency rate is 3%.

Low inventory, low rates and decent demand is the perfect formula for continued appreciation. Yes, a recession is coming, eventually. It is a natural part of the business cycle. But when it does, it will be nothing like the last one. Real estate will be the safest place to be, and when the recession ends it will shoot up again, like it always does.