Are you worried that the hosing market is headed for a crash? You aren’t alone! Two in three Americans think that there is going to be a housing market crash in the next few years.
However, here is the reality… a crash like we saw back in 2008 is far from likely.
Today’s housing market isn’t like it was 15 years ago.
- Mortgage standards are stricter now than they were in 2008
- There are fewer foreclosures in today’s real estate industry
- There are fewer homes for sale in today’s housing market
Mortgage standards are higher today than during the 2008 housing market crash.
Back in the 2008, it was so much easier to get a home loan. If you could fog a mirror, then you qualified for a mortgage. Mortgage standards are way tighter now with laws and regulations in place to prevent predatory lending, which means that buyers are more qualified.
The real estate industry has fewer foreclosures today than the housing market crash of 2008.
With the higher mortgage standards and more qualified buyers, homeowners are less likely to default on their loans. According to Rick Sharga of ATTOM in an article on U.S. News, “ninety-three percent of borrowers who are in foreclosure today actually have positive equity in their homes” that provides more options for better landing places.
Back in 2008, there were far more homes for sale in the housing market compared to the number of buyers.
Excessive building prior to 2008 is one reason why home prices dropped, with supply outstripping demand. Now there are too few homes on the market, mainly due to a number of years of under-building, and that is the key reason that home prices are still strong.
When we look at the facts, it is clear that today’s real estate industry is very different from the housing market crash of 2008. There is no need to fear a crash.
Connect with us at the Barrington Group Real Estate and lets talk. While we take the real estate process and business seriously, we also like to have fun working as some of the best realtors in Denver.
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