Housing Market Correction?
If you’re thinking about waiting for prices to crash before buying, then read this post first!
Like many buyers I talk to, I’m wondering if you’re thinking about 2008…when the housing market did, indeed, well, crash. No question, it was a devastating time for many homeowners. BUT have you considered the possibility that 2022 is nothing like 2008? I really, truly think it is. Here’s why:
- What drove the crash in 2008 and sent home prices plummeting was the oversaturated market. There were WAY more homes than buyers. In 2022, it’s exactly the opposite. Inventory is low—and that's driving prices high.
- In 2008, getting a mortgage was as easy as ordering from DoorDash. Nowadays, there are much tighter regulations on the lending industry. Not just anyone can get a mortgage. That said, if you’re looking to buy, get pre-approved and then shop with confidence that you’re paperwork ready to buy a home.
- In 2008, there were 13.1 million adjustable-rate mortgages (ARMs) on the books. Today, there are around 2.5 million. That’s good news. Why? Fewer ARMs mean fewer homeowners are experiencing the sticker shock of a mortgage rate reset that typically raises the payment and can lead to mortgage hardship.
Wanna talk more? DM me, and let’s keep the conversation going! I’d love to share more about the current market.