Selling Your House Guide from Robert Strohl

2. Mortgage Credit The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way ever since.

Housing Bubble 858.7

Historic Data for the MORTGAGE CREDIT AVAILABILITY INDEX (a report from the Mortgage Bankers Association)

900

800

700

600

500

400

Today 133.5

300

200

100

0

June '04 June '05 June '06 June '07 June '08 June '09 June '10 June '11 June '12 June '13 June '14 June '15 June '16 June '17 June '18 June '19 Today

MBA

3. Number of Homes for Sale One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory – an undersupply of homes available for buyers.

Months Inventory of Homes for Sale

13.0

2010

12.0

2008

Buyer’s Market (> 7 Months)

11.0

2007

10.0

9.0

8.0

2006

7.0

Neutral Market (6 – 7 Months)

6.0

5.0

Today

Seller’s Market (< 6 Months)

4.0

3.0

2.0

4

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