A common question real estate customers are asking about the rapid growth in the Gulf Coast real estate market is “what makes the 2021 market different from the boom years of the early 2000s?”
Real Estate Market 2021
What Makes it Different?
While the growth rate of today’s market has some people doing a double-take at the prices, there are important reasons we’re seeing steady growth, and there are even more important differences between this market and the one experienced in the early 2000s. Real estate professional, Drayton Saunders, President of Michael Saunders & Company, discusses three important factors that differentiate today’s market from that of the one during the 2005-2007 real estate bubble.
Real Estate Market 2021 – Three Important Differences
These three important facts stand out and put a positive spin on the current growth rate in today’s market.
- The Strength of the Borrower – Buyers are backed by solid financials vs. crazy loans to anyone
- The Affordability Index – Mortgage rates vs. Home prices
- Actual Demand – More people are buying for second homes and homestead vs. flipping and investment compared to the early 2000s.