Why experts agree that this real estate market is not a bubble.
With all the talk of an economic slowdown, many people are worried that our market is heading for a crash like the one in 2008. If you’re one of them, don’t worry—economists and industry experts agree that today’s market is not a bubble.
2008 is still fresh in many people’s minds, but today’s market is nothing like it was back then. The chief economist at First American says, “This is not the same housing market as 2008. It’s no secret that the housing market played a central role in the Great Recession, but the market is just fundamentally different in so many ways.”
We are not heading for a crash.
Natalie Campisi, the advisor staff for Forbes, explains how today’s lending standards are different, “Among the differences between today’s housing market and that of the 2008 housing 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 housing market is different is that the number of people looking to buy still outweighs the supply of homes for sale. As Realtor.com notes, “Experts don’t believe that the market is in a bubble or that a crash is in the cards, like during the Great Recession. The nation is still suffering from a housing shortage that has reached crisis proportions at a time when many millennials are reaching the age when they start to consider homeownership. That’s likely to keep prices high.”
The bottom line is that experts say this market isn’t a bubble, and we’re not heading for a crash. Let’s connect so you can get a complete picture of today’s market. Just call or email me. I’d love to help.