On today’s show we are repeating words that have not been heard for nearly a decade. In the wake of the GFC, short sales, underwater mortgages were pervasive in some markets and made up a significant percentage of market activity.
Well according to a recent report from Black Knight, About 270,000 homebuyers who bought during the red-hot housing market this year already owe more than their house is worth. These market conditions are being compared with 2008 very regularly. It’s been nearly a decade since we heard the phrase short sale. It’s been nearly a decade since the term underwater mortgage was used frequently in a sentence.
Many of the same playbook techniques that were used in the wake of the GFC are now being dusted off. We won’t know how pervasive the damage to the housing market will be as a result of these interest rate increases.
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Host: Victor Menasce
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