Some people are wondering, with all the talk about an economic slowdown, if the housing market is going to crash like it did in 2008. To really understand what's going on in real estate right now, it's important to get information from experts you can trust.
Here are some of the reasons why economists and industry experts say the housing market is not a bubble that is about to burst.
2008 is not like today.
Many people who bought or sold a home in 2008 still remember the housing crash. But the market of today is different. Odeta Kushi, First American's Deputy Chief Economist, says:
"This market is not the same as it was in 2008. It's no secret that the housing market was a major cause of the Great Recession, but this market is so different in so many ways that it can't be compared.
Forbes Advisor Staff Member Natalie Campisi explains how today's lending standards are different from those before the housing market crash:
"One difference between the housing market now and before the 2008 crash is that lending standards are tighter. This is because people learned from the last crisis and new rules were put in place. Basically, this means that people who get a mortgage today are less likely to stop paying than those who got one before the financial crisis.
The number of people looking to buy a home is still higher than the number of homes that are for sale. This is another way that the housing market today is different from the market in 2008. As realtor.com notes:
"Experts don't think the market is in a bubble or that a crash like the Great Recession is coming. The country still has a housing shortage that has reached a crisis level at a time when many millennials are getting old enough to start thinking about buying a home. Prices are likely to stay high as a result."
Bottom Line
Experts say that the housing market is not in a bubble and that we are not about to have a crash. Let's talk so you can get a full picture of what's going on in the housing market in our area right now.
Amelia and I on vacation in Gavelston
