Are We Headed for a Housing Crash?

Here’s why we don’t believe the housing market is going to crash again.

One question we’ve been hearing a lot lately is, “With housing prices continuing to climb, are we headed for a market crash?” We don’t have a crystal ball, but the data is telling us that this market is much different than the one we saw before the previous crash. Right now, we have a lot of qualified buyers, low interest rates, and strong demand.

This particular housing boom is built on supply and demand as opposed to the bad loans on which the 2008 crash was built. A lot of predatory lending practices were taking place back then that are not happening today. We have more regulations in place for the protection of consumers and their lenders.

Another difference is the forbearance moratorium. We’re not expecting a huge flood of foreclosures from COVID. A lot of people took advantage of forbearance, but many of these homeowners have great equity, and most have gotten back on track. Just based on the natural appreciation over the last few years, even buyers who can’t get caught back up won’t have to sell at a loss.

“There are more regulations and more protections in place for consumers.”

This is an extreme seller’s market, but there are quite a few protections in place. We’re not headed for another crash, but you can take advantage of these conditions as a homeowner and sell for top dollar. If you’re a buyer, things are a bit more difficult, and you’ll need to properly prepare if you take the leap. Even if you’re not thinking about buying, a refinance could save you thousands on your mortgage payments.

If you have any questions about selling, buying, or refinancing, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.