With all the good real estate news we are frequently asked whether this run is sustainable. While we wish we could predict the future, it is impossible to know for sure.
What we can say is that there are some fundamental differences between this current trend and the last run-up that resulted in an unprecedented downturn.
First, lenders simply are not giving loans to unqualified buyers. The last run up had easy loans given to people who could not afford them. That led to an artificial boost in demand, which blasted the market to unsustainable heights. Today, lenders are required to confirm information about a buyer’s ability to pay a loan – obviously a welcomed return to common sense.
Second, last time national builders rushed into the market to meet the bloated demand. By the time all the new lots and homes came to market, the phoniness of the lending came to light. That left a lot of property for sale and very few buyers. This was the recipe for the crash. Today, builders are nowhere near the pace of creating new communities. That keeps supply in better balance to real demand.
Third, even with the huge improvement in our market over the past three years, price gains this time around have been more in line with reasonable historic patterns. From 2004-2006, gains were 12%, 21% and 12%, respectively. This simply was not sustainable. Prior to that time price gains averaged 5.9% per year. We are now back to that healthier trend.
The big increase in demand today is the result of many homebuyers waiting on the sidelines for years while the market bottomed and confidence in the greater economy resumed. Even with the current record pace of sales, we expect the pent-up demand to take another few years to fully unleash. After that, we hope to be back to our consistent, not crazy, upward movement.
Coldwell Banker Real Estate LLC has announced that Mitch Dietz was named to the Coldwell Banker 30 Under 30. This prestigious list encompasses the top young real estate professionals among the 86,000 Coldwell Banker professionals working in 43 countries around the world. This group of real estate professionals honors the heritage of founders, Colbert Coldwell and later Arthur Banker, who started their company at 24 and 28 years old, respectively.
Mitch, 27, was honored for his use of mobile technology along with his friendly attitude and genuine concern for people. He is also active with several local charities and organizations and uses that time as an opportunity to be a representative of Coldwell Banker. Mitch has been affiliated with Coldwell Banker Evergreen Olympic Realty since 2010.
The Coldwell Banker organization will honor Mitch at their international Generation Blue Experience in Chicago, Illnois on September 16-18.
“This is a monumental achievement for Mitch and we could not be more proud of him,” said Ken Anderson, President/Owner of Coldwell Banker Evergreen Olympic Realty. “He has been a shining star in our company for over 5 years and is so deserving of this incredible Coldwell Banker honor. To think he stands apart from thousands and thousands of tremendous real estate professionals in the entire Coldwell Banker brand is staggering. The future is bright for him.”
“Narrowing the list of talented professionals to decide on the 30-under-30 was an incredibly challenging, yet rewarding, experience,” said Budge Huskey, president and chief executive officer of Coldwell Banker Real Estate LLC. “The remarkable achievements exhibited by these outstanding young entrepreneurs is nothing short of amazing. They serve as a shining example of what’s possible in our business at any age with the winning combination of talent and commitment. Their activities, both in real estate as well as within their companies and local communities, serve as examples for all and I am so proud they represent the future of the great Coldwell Banker brand.”
Great work and congratulations Mitch!