History can be a dependable teacher and guardian, protecting us from repeating mistakes and pointing to important opportunities that can otherwise go unnoticed. But history ignored is powerless, and those unwilling to study the past will always face an uncertain future. It’s a lesson confirmed most recently by America’s real estate collapse, a financial catastrophe that resulted in nearly 4 million foreclosures across the country. More than numbers, each foreclosure was a personal disaster for those who went through it, sometimes ruining marriages, breaking up families, and leaving scars that could last generations.
It’s easy to point to the economists and financial leaders that should have known better, people who, fueled by a mix of greed and irresponsibility, willingly packaged loans that were purely speculative. By so doing, they were effectively selling a car without brakes, making a crash not only probable, but virtually unavoidable. And yet a simple glance at history could have prepared anyone, regardless of their financial training.
Over the past 60 years, existing U.S. home prices, adjusted for inflation, can be seen to have remained largely steady, with small scale booms toward the end of the 1970s and the 1980s. In those booms, a house for $100,000 might have jumped to $115,000 on average, although some areas spiked more than others. Then, beginning around 2000, a price rush started like no other in American history. By 2006 prices had gone off the charts. Instead of a $100,000 house jumping to $115,000, it was suddenly exploding to $200,000, multiples of any previous boom, with prices in some areas far exceeding even that. Like walking the gentle hills of Iowa and suddenly coming across Mount Everest, it’s hard to imagine that anyone could not anticipate the massive readjustment that would inevitably come.
Few would ever want to see a repeat of such an earthquake. With a stricter mortgage environment and reduced housing inventory, some are surprised that housing prices are once again on the upswing, but to a much more modest degree. For California-based online mortgage broker Loans4Less.com, this new and steady growth is providing the perfect foundation for their own development and expansion. The company is rapidly building what it predicts will be an extensively used nationwide platform for real estate and mortgage partners across the country. They’ve created an easy-to-use comprehensive online environment for consumers seeking mortgage and real estate information, a platform that can be leveraged by others to ultimately form a central portal for the industry. With 80% of all home buyers using the Internet for their house hunting, and housing demand continuing to rise, the timing couldn’t be better.
For more information, visit www.Loans4Less.com
Let us hear your thoughts: Loans4Less.com, Inc. Message Board