As crazy as 2015 looked, we still didn’t sell as many homes this year as we did in 2005. Around the office I’m known as the stats guy. I love the numbers and the perspective that we get from them.
The question we often get, “Is 2015 different from 2005?” What they are really asking is whether or not we are in a bubble. Will this crash?
2015 saw prices appreciate by 6.5% while in 2005 it appreciated by 15%.
We don’t have the proliferation of crazy loans, loans where if you could fog up a mirror they would sign you up. I don’t see option ARM’s where you can choose on a monthly basis whether to pay interest only, a normal payment or an extra on top of the payment. Guess which one most people picked each month?
I’m also not seeing a lot of the 2 year adjustable rate loans. Those were tough on people when whatever change in life they were looking for didn’t happen, whether that was cleaner credit, paid off debt, promotion or something else.
Of course, no one knows the future but barring something big happening, I see no reason home sales don’t keep chugging along.