Not so fast. Four reasons why Seattle is not in a bubble.
We're Over Qualified
Mortgage lending practices have become a lot more strict due to their role in the crisis a decade ago. The average FICO score of an applicant for a conventional 30-year fixed mortgage is now 753 and for FHA loan applicants it is 683. The average denied credit score is 703. To help put this in context, today, 55% of all approved applicants have credit scores of 760+, between 2004 and 2008 only 20-30% of approved applicants had credit scores that high. The conditions that allowed for the predatory and risky lending that led to the crisis are no longer present. Again, pointing to a more stable future for the housing market.