General Blog Posts

Double Bubble: Understanding the Impact of a Correction in the Real Estate Market

By March 20, 2014 No Comments

On March 13 Twenty Twenty Analytics hosted a free webinar “Double Bubble” Understanding the Impact of a Correction in the Real Estate Market. Click here to download the webcast. Here are the cliffnotes from that presentation in regards to the Real Estate Market:

  • The United States real estate market has recovered to approximately 10% below historic highs
  • Interest rates are currently at historic lows and appear to be destined to go up
  • Increases in interest rates will decrease purchasing power pressuring home values downward
  • Increases in interest rates will increase payments on current variable rate payers, pressuring defaults
  • When markets are performing exceptionally well, as they have been, it is more important to conduct scenario analyses and stress testing to understand the impact of a market shift, not less important

Twenty Twenty Analytics’ loan portfolio analyses include a tool to set customized stress testing parameters for your entire portfolio, applied at a loan level. Below is a video walkthrough of how we do that (best viewed in full screen mode using highest quality settings, which can be selected at the bottom right of the video screen):

Now, it would be a stretch to say we were the cause for this, but since our March 13th Webinar, there has been quite a bit of talk about a potential second crash, including:

2O2O Analytics

Toll Free 1-877-392-2021

13577 Feather Sound Drive
Suite 400
Clearwater, FL 33672
United States of America