Is the Housing Market Heading for a Crash?
Worried the housing market is headed for a crash? You aren't alone. Two in three Americans think there’ll be a crash in the next few years.
But here's the reality: a crash like we saw in 2008 is far from likely and here's why: Today's housing market isn't like it was fifteen years ago.
First of all it was much easier to get a home loan back them. Mortgage standards are much tighter now, which means buyers are more qualified.
Second there are fewer foreclosures happening today. Because buyers are more qualified, homeowners are less likely to default on their loans.
And third, back then, there were far more homes for sale compared to the number of buyers in the market. That's one reason why home prices have started to drop.
Now, there are too few homes on the market, mainly due to under-building. And thats a key reason why home prices are still strong.
When we look at the facts, it's clear today's housing market is very different from last time, so there is no need to fear a crash.