Buying a Home, Real Estate

Larry Wallace on The Housing Bubble

We’re going to be introducing some pretty amazing people to our blog to get their input and take on different topics throughout Central Oregon and real estate. To start, we connected with Larry Wallace, Branch Manager at Caliber Home Loans, to give his take on the “housing bubble” we keep hearing about.

With 30 years of experience in the mortgage industry, Larry has gained the knowledge and dedication required to provide the ideal financing options to borrowers in the Western US. Before he began his career in mortgage lending, he worked as a Fully Certified Ski Instructor in Park CIty, UT. The experience he gained during this time enabled him to explain technical issues in a simple, understandable, and friendly manner.

If you’re looking for loan financing, get in touch with Larry at Caliber. Their competitive loan financing rates, combined with state-of-the-art technology and dedicated support staff, enables them to provide borrowers with one or more customized loan options while minimizing any stress they may feel. In addition, since Caliber is a dedicated mortgage lender, they can offer you a wider selection of loan products than many banking institutions.


Now, here’s Larry:

A New Housing Bubble?

Wow. Plenty of headlines indicating a new housing bubble is about ready to burst.

Funny though, I have been reading articles screaming “bubble” since 2013.  Thus, I’ve become skeptical of those headlines – unless they are accompanied by actual supporting data. Seldom is such data forthcoming. Yes, like you, I hear comments such as “…it can’t keep going on like this forever” or “…we are back at the same pre-crash prices” or “…the average median income is not going up as fast as the average median home price.” But those are simply statements, not back up data. Remember when we were kids and our math teachers said “show me your work”? That’s what we should seek when we hear claims about the next real estate bubble – supporting documentation, i.e. “show me your work.”

Once past the scary headlines most housing related articles become benign and frequently state “…home price appreciation is slowing down.” That’s the evidence? That is hardly a bubble popping! But you wouldn’t know it from the headline. Can you imagine if a jet liner was taking off at a steep angle – and then eased back into a more gentle angle of ascent…and someone tried to say that was proof the plane was crashing?

Are we being bombarded with scary headlines just to get our “click” on the link? Is that how journalists get paid these days? While sensational headlines is nothing new, but it sure seems worse in this digital age. So, what can you do?  I’d suggest demanding they “show you their work” before putting off the purchase of a new home. You might want to ask good real estate agents and mortgage professionals for their “work” too. My hours and hours of work in this indicates you are safe (even smart) to buy now.

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