Are Recent Home Buyers in Trouble?

This idea that the world is going to crash and everybody's gonna end up upside down in their mortgage is a myth that has been perpetuated by the media and doomsday lovers who thrive on the drama and bad news. However, it is not true - it is not a bad time to buy a home, and in Madison Wisconsin, there is no need to wait. Here's why...

Supply and demand is so out of balance that we have a long way to go before we can create any sort of situation where values go down. As of this writing we have just over 400 home available in Dane County. Compare that to just 5 years ago when we still had an inventory shortage but had more than 1000 home available. In our area we cannot build housing units fast enough to keep up with population growth. Until that changes we can expect to see a seller's market in our area. 

With the equity that most home owners have built up over the last few years, they won't be underwater - even in a very significant crash. In Madison Wisconsin, we would have to see the worst market crash we have ever seen for people to owe more than what their home is worth, and the environment simply isn't in place for that to happen.