Many homeowners painfully remember the housing crash of 2008 and are determined not to get caught on the wrong side of the housing market again. It’s smart to be vigilant but according to experts, today’s market is fundamentally different from 2008 in many ways.
Today’s Hot Housing Market is About Supply and Demand.
First, there isn’t an oversupply of homes for sale today. This is what is currently driving legitimate demand (and pricing) as opposed to the uncontrolled feeding frenzy during the 2000’s housing bubble.
“Experts don’t believe the market is in a bubble or a crash is in the cards,” says Clare Trapasso, Deputy News Editor, realtor.com. “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.”
Lending Standards Are Tighter Today.
Having learned expensive lessons in the past, financial institutions are now using much tighter lending standards. Compared to the risky subprime mortgages and overextended finances that lead to record defaults in 2008, today’s circumstances are drastically improved. In short, signs (and experts) say there won’t be a wave of foreclosures like the last time.
“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,” States Natalie Campisi, Advisor Staff, Forbes.
Today’s Record Levels of Equity Provide Security.
Homeowners in the U.S. currently have a record $11 trillion in home equity. That is twice the previous peak in 2006, and averages $207,000 in equity per homeowner. Simply speaking, there is more tappable equity now than there’s ever been.
“Homeowners continue to benefit from rising home prices,” says Rick Sharga, Executive VP of Market Intelligence, A TTOM. “Record levels of home equity provide financial security for millions and minimize the chance of another housing market crash like the one we saw in 2008.”
The Bottom Line for Brevard Homeowners.
Fear of the unknown holds back the dreams of many homebuyers and sellers. While there are always risks to consider, listen to the experts and recognize the right time when it is here. Local bonus: Brevard is still growing strong with remarkable industry and wage growth so locally homes should stay in high demand for the foreseeable future. If you’re considering buying or selling a home, let’s connect today to discuss how you can benefit from today’s home market. With nearly four decades of real estate expertise, I’ve helped people buy and sell through all types of market conditions. I stand ready as an asset and resource, so don’t hesitate to call on me to help.