5 Reasons Housing is not a bubble
1. Gas Prices
According to AAA, the national average gas price is around $2.24. Signaling that as a barometer global supply and demand are still hovering a stable market. In the 2005-2007 housing bubble, gas prices averaged around $4.
2. Job Stability
In Nevada Job stability has maintained the low percentage of between 6.5-5.1% (Bureau of Labor Statistics)
This acronym stands for Home Equity Line of Credit. During the Bust, HELOCs grew to an amount of over $350 BILLION. Last year there was an uptick to push the national market up to $150 Billion just barely higher than the last 2 years previously. Source Corelogic
4. TRID Disclosures
The advent of added disclosures and making the escrow officer a witness to the transaction has helped curb the fraud and abuse from mortgage scamming. Previously billions of dollars pledged by lenders was siphoned with prosecution and investigation coming years later after the damage had been done. The more powerful CFPB (Consumer Financial Protection Bureau) has more trained investigators to spot trends and act to protect consumers faster.
5. FHA Lending Limits
If house prices want to go higher what does a FHA limit matter? A lot. https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/oe/rpts/fhamktsh/fhamktqtrly
The Federal Housing Adiminstration sets limits and backs loans as a government entity. Over the last 2 years the market share has been around 17%. Most down payment assistance programs require participation in a FHA or VA program. Also FHA loans allow borrowers back in the market sooner which in Las Vegas is very important since a large portion of borrowers have negative credit from foreclosure, short sale, deed in lieu, or bankruptcy.