Is the real estate market repeating 2008 all over again?
Absolutely not! I know there is a lot in the news about real estate these days, and the high interest rates and corresponding buyer anxiety are likely the most significant factor influencing what you may be perceiving to be a slow down in our market, but this is not a repeat of 2008!
Currently, 39% of homeowners in the U.S. own their homes free and clear of all debt (a remarkable number) and another 29% have more than 50% equity in their homes. That’s a full 68% of homes that are in very “safe” equity positions – the risk of any significant number of foreclosures is very low, unlike 2008.
In 2008-2011, we had 11-12 months of inventory on the market at any given time. Today, nationally, we have approximately 1.5 months of inventory on the market, with even less locally. This is an incredibly important differentiator between then and now that indicates that we are not moving toward a housing crisis. In 2008 in our area we had about 13000 properties – now that number is closer to 3000.
Additionally, approximately 3million US households earning over $150,000 per year are currently renting, and the average-aged millennials are just starting to buy their first homes. This provides a steady stream or prospective buyers. All of these factors indicate that we are not slipping into a housing crisis – the higher interest rates have just paused some of the typical move-up, move-down, move-around buyers.
If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home!