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Housing Experts Say This Isn't a Bubble

By
Real Estate Agent with HomeSmart 0561240

Housing Experts Say This Isn't a Bubble

With so much talk about an economic slowdown, some people are asking if the housing market is heading for a crash like the one in 2008. To really understand what’s happening with real estate today, it’s important to lean on the experts for reliable information.

Here’s why economists and industry experts say the housing market is not a bubble ready to pop.

Today Is Nothing Like 2008

The 2008 housing crash is still fresh in the minds of many homebuyers and sellers. But todays market is different. Odeta Kushi, Deputy Chief Economist at First American, says:

“This is not the same market of 2008. . . . It’s no secret the housing market played a central role in the Great Recession, but this market is just fundamentally different in so many ways.”

Natalie Campisi, Advisor Staff for Forbes, explains how todays lending standards are different than those during the lead-up to the housing market crash:

Among the differences between todays 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. Essentially, that means those approved for a mortgage nowadays are less likely to default than those who were approved in the pre-crisis lending period.

Another reason todays housing market is nothing like 2008 is that the number of people looking to buy a home still outweighs the supply of homes for sale. As realtor.com notes:

. . . experts dont believe the market is in a bubble or a crash is in the cards, like during the Great Recession. 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. Thats likely to keep prices high.

Bottom Line

Experts say the housing market isn't a bubble, and were not heading for a crash. Lets connect so you can have a full picture of todays housing market in our local area.

 

 

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“YOUR Rock-Solid Choice Realtor for Making Home Sellers a Profit & Home Buyers Equity”

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Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

Great morning. Have a great day today. See your blogs later today...

Jul 18, 2022 06:14 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Thank you for sharing the information. Buyers and sellers in your area will benefit from your expertise. Wishing you continued success.  Have a wonderful day and sell a house.  bill

Jul 18, 2022 06:24 AM
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning Shayne. The only constant is change. And the real estate market has changed. Bubble or tie for opportunity. With the changing economy there is a growing market for single family rentals and savvy investors are stepping up accounting for just short of 30% of sales. Will it continue? Will foreclosures rise? Yes, probably. But a bubble, no way! Enjoy your day.

Jul 18, 2022 06:28 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and enjoy your day!

Jul 18, 2022 06:47 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Shayne, I do think this is a market correction, not a bubble.   

Jul 18, 2022 06:48 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

I agree with others, this is a correction not a bubble. My issue with investors is they are buying homes, renting them and taking those homes out of the reach of first time home buyers, retired folks who are downsizing to smaller homes, etc. Many of these investors do not care about the longevity of the community or the quality of life. And therein lies the problem.

Jul 18, 2022 06:56 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I am hoping that it is only a market correction, but I was hoping the experts were correct when they said they could engineer a soft landing and that inflation was a transitory issue.

Jul 18, 2022 08:10 AM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Shayne Stone for once I agree with the so called experts.  This is nothing like 2008.

Jul 18, 2022 09:05 AM