With so much talk about an economic slowdown, some people are asking if the houszing market is heading for a crash like the one in 2008. To really understand what's happening with real estate today, it's important to lean on the experts for reliable information. Here's why economists and industry experts say the houszing market is not a bubble ready to pop.
Today Is Nothing Like 2008 The 2008 houszing crash is still fresh in the minds of many houszbuyers and sellers. But today’s market is different. Odeta Kushi, Deputy Chief Economist at First American, says: "This is not the same market of 2008. . . . It's no secret the houszing market played a central role in the Great Recession, but this market is just fundamentally different in so many ways." Natalie Campisi, Advisor Staff for Forbes, explains how today’s lending standards are different than those during the lead-up to the houszing market crash: “Among the differences between today’s houszing market and that of the 2008 houszing crash is that lending standards are tighter due to lessons learned and new regulations enacted after the last crisis. Essentially, that means those approved for a mortgage nowadays are less likely to default than those who were approved in the pre-crisis lending period.” Another reason today’s houszing market is nothing like 2008 is that the number of people looking to buy a housz still outweighs the supply of houszes for sale. As realtor.com notes: “. . . experts don’t believe the market is in a bubble or a crash is in the cards, like during the Great Recession. The nation is still suffering from a houszing shortage that has reached crisis proportions at a time when many millennials are reaching the age when they start to consider houszownership. That’s likely to keep prices high.”
Bottom Line Experts say the houszing market isn’t a bubble, and we’re not heading for a crash. Let’s connect so you can have a full picture of today’s houszing market in our local area.
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