Housing Wire

JULY 6, 2022

This typically happens in a recession, however, the notion that credit lending in America will collapse as it did from 2005 to 2008 couldn’t be more incorrect, as we haven’t had a credit boom in the period between 2008-2022. Because credit got better post-2010, we can see credit availability declines from 2005-2008. Why is this?

Lending 501

Lending Mortgage Business Inventory 501

Housing Wire

NOVEMBER 17, 2020

trillion in 2005 — but sees refinances decreasing to $971 billion. trillion, the highest since 2005. The rebounding economy is also likely to mean higher mortgage rates , with the MBA forecasting 2.9% by the end of 2020, rising to 3.3% by Q4 2021. MBA is forecasting a rise in purchase originations to $1.59 That includes an expected 91.5%

Mortgage 542

Mortgage Housing Market Marketing Real Estate 542

Housing Wire

FEBRUARY 8, 2024

housing credit looks very different than in 2005, 2006, 2007 or 2008. Bankruptcies and foreclosures After 2010, the qualified mortgage laws came into play and all the exotic loan debt structures in the system, especially in the run-up in demand from 2002 to 2005, disappeared. The truth is, U.S.

Legal 494

Legal Mortgage Law Marketing 494

Housing Wire

MARCH 30, 2023

Because of the qualified mortgage laws of 2010, we are lending to the capacity to own the debt, which means speculative credit cycles from primary resident homebuyers or even investors can’t occur in the same fashion as from 2002-2005. We don’t have a rise in foreclosures as we did from 2005-2008 before the job-loss recession.

Housing Market 539

Housing Market Mortgage Law Marketing 539

Housing Wire

AUGUST 16, 2022

Of course, housing starts today aren’t collapsing in the way they did from the peak of 2005 because we haven’t had a sales credit boom in recent years as we did from 2002-2005, which inflated new home sales toward 1.4 Currently, we are in a much different housing recession than what we had from 2005-2011.

Mortgage 533

Mortgage Construction Inventory Buyers 533

Housing Wire

NOVEMBER 10, 2022

from 2005 to 2006, then another 22.4% in unit sales from the peak of 2005 to the trough of 2008. While we generally understand that the unit sales of 2003 to 2005 were fed by fraudulent mortgage activities; nonetheless, unit sales in the record year of 2021 were only 4.1% from 2006 to 2007 and another 20.9% from 2007 to 2008.

Mortgage 493

Mortgage Housing Market Lending Finance 493

Housing Wire

MAY 26, 2022

That’s not the case now because we have’t had a credit boom post-2010 as we did from 2002 to 2005. However, the spike in inventory that we saw from 2006 to 2011 can be attributed to the massive credit bubble we had from 2002 to 2005. Credit stress was evident from 2005 to 2008. What is going on here?

Inventory 526

Inventory Housing Market Construction Marketing 526

Housing Wire

NOVEMBER 9, 2022

But I need to explain why this level has more in common with 2014 housing data than the credit stress markets of 2005-2008, and why you should care. This time around, we have not seen the kind of housing credit boom that we did from 2002-2005. Purchase application data is now below 2008 levels!

New Listings 508

New Listings Inventory Housing Market Sellers 508

Housing Wire

MARCH 31, 2022

I’m going to take their talking points and explain in detail why this isn’t the housing bubble of 2002-2005. “ Over the years, I have tried to express that we won’t have a repeat of 2002-2005 when it comes to a speculative mortgage debt expansion on unsound credit. Our evidence points to abnormal U.S.

Housing Market 532

Housing Market Inventory Lending Marketing 532

Housing Wire

OCTOBER 18, 2021

First, purchase applications in the data should be skyrocketing as they did during the 2002-2005 ill-considered, home-buying extravaganza. If the housing market was in the grips of some mass hysteria of irrational purchasing, we would expect to see certain hallmarks in the data.

Housing Market 535

Housing Market Marketing Real Estate 535

Housing Wire

NOVEMBER 17, 2022

As you can see in the chart below, we had a nice, slow up-trend from 2002 to 2005 and here in the 2020 to 2022 timeframe, we haven’t gone anywhere much with total completion data. Back in 2005, new home sales were so elevated from exotic loan debt structures that the collapse in sales was truly epic.

Contracts 545

Contracts Construction Supply Chain Marketing 545

Housing Wire

NOVEMBER 9, 2021

We can see a slow and steady positive downtrend in stressed financial data, unlike in the 2005-2008 period where people filed for bankruptcies and foreclosures without a job loss recession. This content is exclusively for HW+ members. Start an HW+ Membership now for less than $1 a day.

Mortgage 529

Mortgage Lending Housing Market Marketing 529

Housing Wire

AUGUST 30, 2022

However, we haven’t had a credit sales boom like the one we saw from 2002-2005. Total Inventory had been growing from 2001-2005; total listings data in 2005 was at the higher historical range of 2.5 However, not to the degree we saw from 2005-2008. million listings. Today, we stand at 1,310,000 active listings.

Inventory 397

Inventory New Listings Law Housing Market 397

Housing Wire

NOVEMBER 8, 2021

This was the case for housing during the lead-up to the bubble years as housing data went criminally insane in the years 2002-2005. Each economic sector behaves differently in a recession; typically, the industry with the most leverage on growth gets hit the hardest.

Housing Market 526

Housing Market Marketing Inventory 526

Housing Wire

JULY 19, 2022

We never saw the credit sales boom as we did from 2002-2005, so the builders themselves are in a better position to manage their future. We won’t see a sales decline in scale terms as we had from 2005-2008 since we simply have never had that type of sales and credit demand. This data line is already below 2008 levels currently.

Housing Market 526

Housing Market Marketing Construction Real Estate 526

Housing Wire

FEBRUARY 22, 2024

In 2005, he began a 10-year stint working for the Royal Bank of Scotland in Singapore, then joined Morgan Stanley in 2015, according to his biography. Akwaboah serves on the board of the Morgan Stanley Foundation and is also a member of the Federal Reserve Bank ’s payments risk committee.

Technology 497

Technology Government Business Marketing 497

Housing Wire

MAY 8, 2024

You can see the drastic change this made in the Mortgage Bankers Association Credit Availability index , below, which skyrocketed in 2005 and 2006 before an epic collapse in 2008. Just look how lousy credit looked below in 2005, 2006 and 2007 — all before the job-loss recession in 2008. Demographics also play a role here.

Inventory 518

Inventory Law New Listings Sellers 518

Housing Wire

APRIL 13, 2022

However, the demand curve of what we have in housing too doesn’t resemble the speculation demand curve of what we saw from 2002-to 2005. So the type of boom and bust we would need to see to reflect bubble speculation demand isn’t in this market like we saw from 2002-to 2005.

Housing Market 476

Housing Market Marketing Mortgage Inventory 476

Housing Wire

MARCH 15, 2021

Home prices were growing at an unsustainable level from 2002-2005, leading to some excess risk-taking on inadequate loan debt structures. First, the refinance boom’s main driver in the 2000s was unhealthy because of the marketplace’s speculative unhealthy lending standards.

Lending 543

Lending Housing Market Mortgage Marketing 543

Housing Wire

JULY 5, 2021

is the highest reading for May since 2005. From the National Association of Realtors : “Pending home sales rose 8% in May from the prior month and 13.1% from one year ago. The May 2021 Pending Home Sales Index of 114.7 Contract signings rose in all regions in May compared to the prior month and one year ago.

Realtors 505

Realtors Contracts Marketing Housing Market 505

Housing Wire

JANUARY 6, 2021

trillion, with the largest refinance market since 2003 and the largest home purchase loan market since 2005 and 2006. According to the Mortgage Bankers Association, mortgage origination volume is expected to reach $3.1

Housing Market 476

Housing Market Technology Marketing Mortgage 476

Housing Wire

JUNE 28, 2022

Since 2014, we’ve not seen the credit housing boom that we saw from 2002-2005. The housing market can’t replicate the type of massive credit expansion we saw from 2002-2005, so the price-growth story has more to do with inventory collapsing to all-time lows. Even today, the MBA purchase application index is below 2008 levels.

Housing Market 482

Housing Market Marketing Inventory Investors 482

Housing Wire

MARCH 20, 2024

Realty ONE Group International, which was founded in 2005 and is based in Las Vegas, is a real estate franchise brokerage. The company employs approximately 19,000 real estate professionals in more than 400 offices across 49 U.S. states and 20 countries and territories.

Realty 441

Realty Human Resources Real Estate Brokerage 441

Housing Wire

SEPTEMBER 28, 2020

No, this is not a new home sales housing bubble as we are far from total new home sales being where they were in 2005. The monthly supply of new homes was mostly higher every month in the previous expansion (2008-2019) than any period from 1996-2005. At that time, the new home sales sector got so bad that I put it in the penalty box.

Inventory 532

Inventory Buyers Housing Market Mortgage 532

Housing Wire

SEPTEMBER 21, 2022

Just to give you some perspective here, at the peak of 2005, we had about 2.24 Not the case this time around as we haven’t seen the kind of booming sales market like we saw from 2002-2005. Housing construction in the U.S. million housing completions in the monthly report. below the revised July estimate of 1.419 million, but 3.1%

Construction 524

Construction Housing Market Marketing Business 524

Housing Wire

JANUARY 25, 2021

million existing home sales in 2021, the most recorded in a single calendar year since 2005 and a 21.1% Approximately 5.6 million existing homes were sold in 2020, a 5.3% increase from 2019, according to officials. Zillow predicts 6.82 increase from 2020. “[The low rates] are keeping monthly payments in reach,” he said.

Home Value 545

Home Value Mortgage Buyers Marketing 545

Real Estate News

NOVEMBER 15, 2023

Willis previously held the top leadership position at Keller Williams Realty from 2005-2015 and had recently rejoined the company in a consulting capacity.

Realty 312

Realty 312

Housing Wire

AUGUST 21, 2020

This is evident if one compares the purchase application data from the overheating market of 2002-2005 to the period between 2012-2020. First the rate of growth in no way compares to what we had during the bubble years of 2002-2005. While sales are and will stay elevated compared the COVID-19 lows, the market is not bubbly.

Housing Market 544

Housing Market Mortgage Buyers Marketing 544

Housing Wire

AUGUST 15, 2024

Credit Suisse acquired SPS in 2005 but was rescued by UBS last year. Fitch Ratings said in a report that SPS has been servicing residential mortgages since 1989 and residential mortgage-backed securities (RMBS) transactions since 2000. The Swiss bank added SPS to its division that is focused on non-core and legacy businesses.

Investors 474

Investors Mortgage Business Buyers 474

Housing Wire

SEPTEMBER 22, 2020

In 2005, near the height of the housing boom, almost half of all mortgages were ARMs, which typically meant they had an initial fixed period of five or seven years followed by annual adjustments linked to a benchmark like LIBOR. Treasury’s repo market where investors offer banks overnight loans backed by their bond assets.

Mortgage 475

Mortgage Government Investors Finance 475

Housing Wire

SEPTEMBER 20, 2023

The Southern California brokerage was founded in 2005 by George Penner and Mike Deasy, who will both remain with the firm after it joins the Robert Reffkin -helmed firm. Moving forward, the firm will be known as DPP @ Compass. Compass described the move as a “partnership,” but the financial terms of the deal were not disclosed.

Brokerage 432

Brokerage Real Estate Architecture Agents 432

Housing Wire

AUGUST 17, 2021

The business’s legacy was venerated at various point such as in 2005 when then Chicago Mayor Richard M. The fight for Illinois legislation over the matter was part of what eventually lead to the 1967 federal Fair Housing Act. In 1991, John Baird’s son, Stephen Baird, took over as president and later CEO of the brokerage.

Brokerage 448

Brokerage Realtors Agents Real Estate 448

Housing Wire

AUGUST 23, 2022

can’t have a credit sales boom like we saw from 2002-2005. This means we won’t be working from record-breaking demand of high sales like we did at the peak of 2005. The builders are in a better position to manage their inventory glut than when they were working from a credit boom in 2005 that took new home sales up to 1.4

Construction 370

Construction Housing Market Sellers Real Estate 370

Housing Wire

MAY 24, 2022

As you can see, sales levels were never elevated like what we saw from 2002-2005. This housing cycle is and will always be based on real demand, versus the credit boom we saw from 2002 to 2005. Slow and steady wins the race. These big headline prints tend to get revised to a more proper level.

Housing Market 418

Housing Market Inventory Construction Marketing 418

Housing Wire

NOVEMBER 8, 2023

Foreclosures and bankruptcy data One of the most prominent credit stress data lines I have ever seen came during 2005-2008. Starting in 2005, four years before the Great Recession started, we saw significant credit stress built up in the system, all while the economy was expanding.

Housing Market 418

Housing Market Legal Marketing Mortgage 418

Miller Samuel

AUGUST 8, 2020

In 2005, I was interviewed by CNBC in the midst of the Housing Bubble and said that 75% of the appraisals being done then weren't worth the paper they were written on (hey it was 2005 and they were done on paper, not pdf). Although I've shared the following CNBC clip before, it's worth showing again given my 15-year ago hairstyle.

Appraisal 367

Appraisal Valuation Business Mortgage 367

Housing Wire

NOVEMBER 2, 2021

One of the reasons why I stressed earlier this year that the rate of growth in home prices would cool off is that we didn’t have a credit boom this year, like what we saw from 2002-2005. After you make some COVID-19 adjustments, demand is stable, not booming.

Business 516

Business Housing Market Marketing 516