Are you worried about the state of the market? This market is feeling a little crazy, no? Is 2008 happening all over again!?
It’s a valid concern, but you shouldn’t be worried. Here are three reasons why I don’t think another crash will happen now:
1. We still have a shortage of homes. Inventory is still low. In 2008, we had about 10.4 months of inventory, but we only have 3.2 right now based on Q3, and some sellers are still getting multiple offers.
2. Lending standards are tighter. Mortgage companies have higher standards now. Nowadays, there’s no such thing as no down payment and no closing cost transactions.
3. Foreclosure volume is low. With better borrowers, the risk of default is much lower. In 2008, over 500,000 homeowners went into foreclosure, but in 2022, we saw fewer than 100,000 foreclosures.
Many homeowners aren’t aware that they are home equity rich and this is why having a real estate expert do a professional home equity analysis for you is very important. The more factual information you have, the more you have confidence in how to move forward with your real estate goals.
Content provided by Women Belong member Ressie Krabacher