If you’re crossing your fingers for the housing market to take a nosedive and make homes affordable again, the latest scoop might disappoint. Despite what you might hope, experts are betting that house prices will continue climbing.
Let’s explain why today’s scene is nothing like the pre-2008 chaos.
Tougher to Get a Loan Nowadays – And That’s for the Best
Rewind to the days leading up to 2008; almost anyone could get a mortgage. Fast-forward to now, and it’s a whole different ball game. The Mortgage Bankers Association shows us that getting a mortgage has become a tougher nut to crack. This tightening up is actually a good thing—it keeps the market from getting out of hand.
Not Enough Homes on the Block
Back then, there were so many homes up for grabs that prices took a hit. That’s not the case today. With the current inventory at a tight 3-month supply, compared to 2008’s overflowing 10.4 months, there are just not enough homes available to cause a price plunge.
People Aren’t Using Their Homes as Piggy Banks
In the lead-up to the last big housing crash, it wasn’t unusual for folks to use their home’s equity like a cash machine. Today, people are playing it much safer. Even with equity reaching record highs, homeowners aren’t rushing to cash out.
This caution means fewer folks are underwater on their mortgages, putting the market on steadier footing and keeping a lid on desperate sales that could drive prices down.
The Takeaway
Holding out for a crash to reduce prices might not be the best plan. The current market’s got a different vibe, and it’s looking a lot more stable. If you’re eyeing a new home, teaming up with a savvy real estate agent like Wendy Gimpel could be your best move. Contact us today to find your dream home!