65% of Americans believe there's going to be a crash in the next three years. Ding, ding, ding, ding. Headline news all over Well, what is really happening? Let me tell you. There's no way we're going to see what we saw in 2007 and 2008. The reason why is that today, people need to qualify for a loan. The amount of qualifications that you need to go through, from percent down, from your income, from your ratios, from your debt-to-income ratios, the qualifications that a lender has today for you to get a loan are much stricter than they were in 2007 and 2008. In 2007 and 2008, you could just make up an income amount, and the government and the banks believed you, and you got money. Well, it's a lot stricter today, so the qualifications are much higher.

Therefore, number one, most borrowers have a lot of equity in their homes. Number two, you might be reading, "We're doubling foreclosures.” Foreclosures are on the rise. This is exactly 2007 and 8." But as you can see from the graph below, the number of foreclosures is very small. You see, in 2007 and 2008, it was very high. The amount of homes, people let their homes go into foreclosure because they didn't have any equity, right? Because the market was falling, they had zero down, so they didn't have any equity, so they were letting their home go into foreclosure. It's a very different story today because, unfortunately, there are some foreclosures, but they're very small, as you can see. And third, the inventory is the lowest we've seen. We're down 111% from last year. As you can see, we had six to seven months of inventory in 2007 and 2008. We're sitting under one month's supply of inventory. So because of mortgage standards, the low foreclosure rate, and inventory, we are not expecting a crash. So hopefully that makes you sleep better at night, you'll enjoy your home, and we'll talk to you next week.