Housing Market Outlook

Why is the housing market different today than it was in 2008 before the housing crash?

1. Housing inventories ae very low.  The nation is about 3 million homes short of meeting buyer demand.
2. Buyers still want to purchase homes.  Affordability has taken a hit with both home prices and mortgage rates rising, but buyers are still looking for and purchasing homes.
3. Mortgages are very different than in 2008.  Subprime lending that was blamed for the 2008 crash is much smaller and more regulated than in 2008.
4. Far fewer homeowners are behind on their mortgage payments than in 2008.
5. Real estate can be a hedge against inflation.  Locking in a fixed rate mortgage now protects against future increases.  Also, should mortgage rates fall in the future, homeowners can refinance at lower rates.
6. Some markets may experience a small decrease in home prices as markets adjust.  Keep in mind a decrease of 5% or so in some markets is not the same as a market crash.