The fall of subprime and what it means
We have all been hearing a lot about the fall of subprime lenders lately, but what does it all mean? What is a subprime lender? How do they work and why are the getting shut down?
I normally never do a “copy and paste” blog post, but this time I am making an exception. Jillayne Schlicke from Rain City Guide did a BRILLIANT post on subprime lenders and what is going on. I highly recommend that you read her post because it very clearly explains subprime and answers a lot of questions that I’m sure many of you have had.
Hey Nickie,
Thanks for the nod! I had Bellingham agent Bob Hickock drive down to Seattle and Bellevue for THREE classes I taught this month. Traffic is getting so bad down here that it’s almost easier/faster for me to drive your direction since I live in Edmonds. Who should I call up there about getting myself booked to teach Realtor or Mortgage lender clock hour classes?
BTW (by the way) On the front page of the Seattle PI on Tuesday there were some stats released showing that Bellingham had an overpriced real estate market. What did you all think of those stats?
Very best regards,
Jillayne Schlicke
Hey Jillayne,
Thanks for the comment. As for teaching classes up here, you could contact Sue Stremler at the Whatcom County Association of Realtors.
As regards the overvaluation question, my impression is that it is more of an affordability indicator than a market value indicator. I know that pricing levels eventually collapse as fewer and fewer people can afford to buy, but it seems to me that the wild card is the income level (and equity transfer) of incoming population. We have definitely seen a stronger upper end market over the past year, even as the mid-price and lower end has softened. This also pulls up our average and median prices and tends to skew the “affordability” perception. It almost seems as though a market should be broken into segments to more accurately determine it is either overvalued or affordable.