The question on every prospective home buyer’s mind is…when is the marketing going to crash? It is the question that I get asked A LOT and here is the answer I give, every time. 

The infamous “when will the bubble burst” question..while the answer is not so straightforward, current data and trends point to a “not anytime soon” answer. Here is why this housing market is SO much different than the “crash of the mid-2000s”…

Housing Supply – unlike mid-2000s, the major factor driving up home values is that we are in a dire inventory shortage. Increased demand coupled with low supply of any item will lead to higher prices. 

Equity – the mid-2000s saw a massive wave of homeowners cashing out the equity in their homes, which led to a lot of negative equity situations. Today, the picture is much different.  Cash-out refinance volume over the last three years is less than ⅓ of what is what compared to the three years before the crash. Homeowners learned their lesson on this one.  

Housing Demand – The housing demand is not fabricated this time. In the mid-2000s crash, the mortgage industry fed into the frenzy (i.e. fake housing demand), making it easy for people to obtain home loans much higher than they could afford (if you had a pulse you could get a mortgage then).  Today, the housing demand is VERY real AND lending standards have become much tighter than before the crash. 

Buying real estate is one of the BEST things you can do to build long-term generational wealth and financial freedom…

So if you’re a buyer who is thinking of buying right now, remember… it doesn’t matter when you buy it, but how long you hold it! 

If you’re looking to buy, sell or invest in real estate, contact me for a no obligation consultation today.