Will the Market Crash Soon?

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As home prices continue to rise, the most common question asked is if we are headed for another crash like the crash that happened in 2008. A few factors provide evidence that today’s housing market is not the same as 2008’s real estate debacle.

How Today’s Housing Market is Different from 2008 in Real Estate

It is normal to be afraid of the housing crash that put everyone in the red in 2008. It was unprecedented and scary. Here are some reasons why history can’t repeat itself:

  1. Inventory Is Low: Many homes are selling for over the asking price because there are more people out there looking to buy than there are homes available. When people have few options to choose from, they will pay over-asking in order to secure themselves a place to live.
  2. Demand Is High: New people are entering the housing market that were not homeowners previously, particularly millennials. This influx of potential buyers has made the demand high on homes that are for sale. And the inventory does not match the demand.
  3. Loans Are Hard to Get: In 2008, loans were doled out for homes to people with no pay stubs, no credit checks, and no stable employment. Now you have to show tax returns, steady income, adhere to a credit check, the whole nine yards. Banks want to ensure that people who buy a home can actually afford it.

Top economists foresee this low inventory-high demand pattern to continue for multiple years. Because of this, there are no predictions of housing prices declining but continually increasing over the next few years.

Contact Experts in Real Estate

Do not let the crash of 2008 deter you from investing in real estate today. If you can get your hands on the home of your dreams, make the investment. Trust the predictions that home prices will continue to climb.

If you are in the Temecula area and looking to buy, contact me, Cale Thomas, at Elite Properties Direct. You can reach me to discuss your real estate issue by texting, emailing, or calling me at (951) 473-0390 or [email protected].