Why Today’s Housing Market Is Not About To Crash There’s been some concern lately that the housing market is headed for a crash. And given some of the affordability challenges in the housing market, along with a lot of recession talk in the media, it’s easy enough to understand why that worry has come up. But the data clearly shows today’s market is very different than it was before the housing crash in 2008. Rest assured, this isn’t a repeat of what happened back then. Here’s why. >>It’s Harder To Get a Loan Now It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Things are different now as purchasers face increasingly higher standards from mortgage companies. >>Unemployment Recovered Faster This Time While the pandemic caused unemployment to spike over the last couple of years, the jobless rate has already recovered back to pre-pandemic levels. Because so many people are employed today, there’s less risk of homeowners facing hardship and defaulting on their loans. >>There Are Far Fewer Homes for Sale Today There were also too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Today, there’s a shortage of inventory available overall, primarily due to years of underbuilding homes. >>Equity Levels Are Near Record Highs That low inventory of homes for sale helped keep upward pressure on home prices over the course of the pandemic. As a result, homeowners today have near-record amounts of equity. And, that equity puts them in a much stronger position compared to the Great Recession. Molly Boesel at CoreLogic explains, “Most homeowners are well positioned to weather a shallow recession.” #realestate #homeownership #homebuying www.DanFreshley.com

Why Today’s Housing Market Is Not About To Crash There’s been some concern lately that the housing market is headed for a crash. And given some of the affordability challenges in the housing market, along with a lot of recession talk in the media, it’s easy enough to understand why that worry has come up. But the data clearly shows today’s market is very different than it was before the housing crash in 2008. Rest assured, this isn’t a repeat of what happened back then. Here’s why. >>It’s Harder To Get a Loan Now It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Things are different now as purchasers face increasingly higher standards from mortgage companies. >>Unemployment Recovered Faster This Time While the pandemic caused unemployment to spike over the last couple of years, the jobless rate has already recovered back to pre-pandemic levels. Because so many people are employed today, there’s less risk of homeowners facing hardship and defaulting on their loans. >>There Are Far Fewer Homes for Sale Today There were also too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Today, there’s a shortage of inventory available overall, primarily due to years of underbuilding homes. >>Equity Levels Are Near Record Highs That low inventory of homes for sale helped keep upward pressure on home prices over the course of the pandemic. As a result, homeowners today have near-record amounts of equity. And, that equity puts them in a much stronger position compared to the Great Recession. Molly Boesel at CoreLogic explains, “Most homeowners are well positioned to weather a shallow recession.” #realestate #homeownership #homebuying www.DanFreshley.com
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