Housing Bubble, you Again?

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In the wake of 2008 Housing Crisis in South Florida, many fear the current market is in a bubble. Looking at the median sales price for homes in Miami, Florida in the graph below, the trend for 2016 looks eerily similar to the one that was approaching 2007. But before, abandoning your property there are many differences in the real estate market today than there was in 2008. There are new federal regulations in place, as a response to the recession, to protect today’s homeowners. Furthermore, there is a difference in the type of homes being bought today, a difference in the amount of money borrowed and loaned, and there is much less of a problem of overvaluing homes today.

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The 2008 housing bubble was rooted in the abundant distribution of poorly backed mortgages and loans to individuals who could not afford them that caused many individuals to default on their loans. Today’s loans and mortgages are far more secure, and although the market will most likely not rise at its current rate, it will also not have as dramatic of a drop as in 2008.

 

If you need a fast loan, Refresh Funding can provide Florida-based loans for individuals seeking Rehab loans for Fix and Flips. Refresh offers fix-and-flip rates starting at 9.99% for a 12-month term or rental loan rates starting at 7.99% for 36-month terms. We like to think of ourselves as your choice for Private Mortgage Funding & Lending.

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