Why This Market Is Not a Bubble Ready To Pop

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Homeownership is one of the biggest life goals of many and is often regarded as the American Dream. Before the mid 1900’s less than half of the country owned their home while after World War II many veterans sought the assistance of the GI Bill to purchase their first house. Since this time the rate of homeownership has grown to a current level of over 65%. The growth has been on a steady rise with the exception of a few years between 2006 and 2008 during the last bust in the market. Experiencing that dip in our not too distant past may make many concerned that we may see this dip repeat soon again. To compare the situation from then to now, here is a closer look at some differences.

Why The Market Crashed Then

Back in 2006 there were many foreclosures in the real estate market that forced home values down tremendously. What happened was many buyers were not truly qualified for the mortgages that they were approved for. Also, many homeowners had cashed in on a significant amount of equity on their homes. When prices had dropped they found themselves upside down where they walked away from their homes which added even more foreclosures to the market resulting in lower neighborhood home values.

Why The Market is Different Today

Today’s real estate market is different for two primary reasons. First, demand for housing is actually real. Back around 2006 banks would create demand by lowering lending standards so that a larger pool of buyers could qualify for homes that normally would not. Today’s buyers as well as those who are refinancing their existing homes are facing much stricter qualifications than back then. So by contrast nowadays the demand for homeownership is real especially where the importance of home has increased in value due to the recent pandemic.

Another reason why today’s market is different is that homeowners are not using their homes like they did back then as personal ATMs. In the early 2000s many were thinking the rise of home prices would not come to an end so they were pulling out equity and buying more homes, cars or other high ticket items. Soon after when prices dipped they found themselves under water leading to many foreclosures. Nowadays homeowners have not forgotten what happened then and have learned from it and are not following this same behavior.

Beth Dickerson

Boston, MA

Primary phone
(617) 510-8565
Email
[email protected]
Address
277 Dartmouth St. , 2nd Floor,
Boston, MA 02116

About The Author

One of Boston’s most reputable real estate brokers, Beth Dickerson has achieved more than $2 billion in sales and thousands of successful real estate transactions over her nearly thirty-year tenure. Beth has received national acclaim from the real estate industry and represents some of the most prestigious residents and properties across Massachusetts. Her enduring record as a top producer comes from the intuitive gift of sensing her clients’ needs. She has built a business that is referral-based at its core—a testament to her relationship-driven approach and penchant for exceeding expectations. It is this nuanced expertise that Beth leverages to guide many of her clients-turned-friends through some of the greatest milestones of their lives.

Beth was the proprietor of her own real estate company before joining the residential division of R. M. Bradley in 1993, where she was a top producer for more than a decade. In 2003, she founded her own boutique real estate firm, Dickerson Real Estate, before merging with Gibson Sotheby’s International Realty in 2007. Today, Beth attributes her success to her comprehensive marketing and advertising strategies, exclusive contact network, and unparalleled insight into neighborhoods like Back Bay, Beacon Hill, the South End and Waterfront. With an understanding that no two clients are alike, she works with clients in all phases of life—from first-time buyers to luxury developers, seasoned sellers and beyond. Beth offers clients the resources to aggressively market their property locally, nationally and globally, and her attention to detail, drive and enthusiasm are unmatched.

Beth has appeared in prestigious media outlets including The Wall Street Journal, Mansion Global, The Boston Globe, and Boston magazine, and was prominently featured as Greater Boston’s real estate expert on WCVB Chronicle in 2020. She has had the honor of serving as President of the Downtown Council of the Greater Boston Real Estate Board. For over ten years, she has been a Co-Chair and Committee Member for the Massachusetts General Pediatric Hospital for Children’s Storybook Ball. She serves as a Board Member of the Community Music Center of Boston and a member for the Perkins School for the Blind, Emerald Necklace Park Conservancy, Justine Liff Luncheon, Youth Villages and the Boys & Girls Club of Boston, among dozens of other organizations throughout the Boston area.

A long-time resident of Boston’s Back Bay, Beth was an active member of the community as she raised her two children: she served as treasurer of the Clarendon Street Playground and was an avid supporter of the Hill House Community Center.