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Same in Atlanta. In fact, demand is up because people from South FL, SoCal, NYC, Boston, Nevada are abandoning their homes and coming here en masse. The South FL area has shrunk a bit in population since the bust, but here, population increases continue to be 150-160K per YEAR. It's crazy. We did have a slight price dip in 2006-2007 of about 4%, but it was nothing compared to the other areas sucked into this mess (and it was caused by an excess supply of homes, which we have slowed down on building). Now, prices are stable and rising at a steady rate like they have been.
And Texas got influx from California and Arizona.
But even that will level off. Then what happens ? Will our cities' home values drop just as quick but later ? Are we really just waiting our turn or are we really more stable ?
It used to be that many first time homebuyers used an FHA loan with lower downpayment requirements but higher qualifying standards-dept ratios, etc. Then they stayed in their starter homes for 5-7 years building equity for a 20% down conventional mortgage where they stayed for 20+ years until they downsized into their retirement homes, for which they paid cash from the sale of their paid-for second house. I don't see that things will be any different then this.
I have heard a 20% down payment will be required. Is this true? What other qualifications will a potential borrower need in order to be eligible for a mortgage?
I truly hope the lion's share of home loans are the old "proven" standard of conventional loans with a 20% down payment along with a good-to-excellent credit rating and a fair appraisal of the property being bought.
And I'd like to see the originator of the loan keep the paper instead of packaging the loans as securities based on risk factors with different risk protection tranche levels.
And Texas got influx from California and Arizona.
But even that will level off. Then what happens ? Will our cities' home values drop just as quick but later ? Are we really just waiting our turn or are we really more stable ?
I'd love to have a crystal ball right about now
I know Atlanta will be stable. The incomes here are comparable to NYC (~2K less per year) and LA (about 5K more per year, maybe more now), but home costs have always been significantly less and have kept with the CPI. Overall cost of living here is less. However, you still have the credit whores, so foreclosures still happen. But, overall, I'm so glad we didn't suppress supply here like was done in other markets and artificially drive up prices.
As long as the introduction of NEW supply levels down as new comers do as well, prices should be stable.
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