Why This Housing Market Is Not Like 2008

Why This Housing Market Is Not Like 2008

Appreciation – Leading up to the crash, we had much higher appreciation in this country than we saw coming into this year. In fact, the highest level of recent appreciation is below the lowest level we saw leading up to the 2008 crash.

Mortgage Credit – After the crash, lending standards tightened and have remained that way ever since. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage.

Number of Home Sales – One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the image above, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory – this is undersupply or low inventory of homes.

Home Equity Today – Today, 58.7% of homes across the country have at least 60% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to walk away from
their homes.

If you’re considering selling your house to make a move this year, there’s no need to fear the market. The housing market is not in a crisis, and this is nothing like 2008.