Is the Real Estate Market Going to Crash?
Filed under: Real Estate Market
With real estate prices at an all-time high, many people are wondering if the end is in sight. Are these current trends sustainable? Will the market crash? It feels like 2008 all over again, which has homeowners wondering if we’ve reached the top.
Current Market Drivers: Demand and Inventory
We’ve talked about this topic multiple times in recent years, but it’s still relevant. If we are going to look at whether the market is going to crash, it all comes down to inventory and demand. We continue having record-low inventory levels, which means that demand is high among the people who are wanting to buy.
There are more people entering the home buying market place than there are homes available. This is happening particularly in the millennial generation. To put it simply: there aren’t enough homes to meet the demand of all of the new buyers coming into the market. As long as this trend continues, then I don’t predict any major changes in the market.
Industry experts are anticipating that it will be a multi-year problem. Anything is possible – but it’s unlikely that we will see the market settling down or crashing in the near future.
Why 2021 isn’t the Same as 2008
There are notable differences between what is happening now compared to what we experienced in 2008. For example, loans are harder to get now because every home buyer must provide a variety of documentation, including tax returns, paystubs, and more.
In comparison, home mortgages were a lot easier to get in 2008, with buyers getting more financing than they could manage. At the time, someone could get a mortgage even if they didn’t have stable employment or were recently in bankruptcy.
It’s a different market now, and we aren’t dealing with the same factors that took down the real estate market in 2008.
Finding the Right Home
Do you need help finding the ideal home and getting the financing for your purchase? I’m always here to assist. Reach out for up-to-date information about Temecula real estate. Whether you are buying a home or getting ready to sell, I can help. Text, call, or email me at (951) 473-0390 or [email protected]