3 Reasons This is NOT the 2008 Housing Market
I'll wait till prices come down. When is the bubble going to burst? I hear these a lot. But other than price going up, here are three reasons the two markets are completely different.
#1 One inventory.
In the years from five to seven, inventory levels climbed while prices also climbs. Simple economics says supply and demand work inversely one another. In the last four years, inventory has gone down while prices have gone up.
#2 Housing demand
The mid 2000s was fueled by irrational exuberance, basically FOMO due to low mortgage standards. Today lending standards are tight and rates are historically low, making it a sound financial decision. The demand is real, not artificially created.
# 3 Equity
In the mid 2000s, homeowners tapped into their homes equity like a credit card. Now we've gotten smarter. Cash out, out. Refinances are a third of what they were leading up to the crash of 2008. While the market is volatile and competitive, it is not unstable. So while a pullback will eventually happen, a crash is unlikely. Waiting will cost more.