Ready for some real talk? I get asked a lot if we’re on the precipice of a housing market crash – ya know, the way we had one in 2008.
Sadly, I cannot predict the future but I can share with you a little about what I’ve seen in the market over the past few weeks and months.
🏠 Lot of buyers
The US population is still on the rise, and more and more homebuyers are millennials. According to the National Association of REALTORS, 43% of homebuyers are millennials. This up from 37% last year. As rent rates skyrocket, these millennials are desperate to get out of the rent race and start building their own wealth.
🏠 Low inventory
Right now, there’s simply not enough houses on the market for everyone who is looking to buy. When there’s more demand than there is inventory, prices will remain high. It’s still a seller’s market, and even if the market evens out a little bit, it’ll likely still stay a seller’s market for a little while longer.
🏠 Healthier mortgages
Leading up to the 2008 housing crash, anyone and everyone could get a mortgage. We now have higher lending standards and more mortgage regulations. This means that homeowner’s are less likely to default on their mortgage – at least compared to the people who got pre-approved before 2008.
Yes, the current US economy is a little…well… tumultuous right now. However, since housing is an essential human need, I don’t foresee any sort of “crash” in the near future.
That being said, if you want to talk about real estate, I’m all ears!