How are we NOT in the housing BUBBLE?
Looking at the history of the housing market, we are not in a place where the market is ready to burst, and today. I’m going to break that down for you.
If we take a look at the history of the modern housing market, looking specifically at prices, we see that there was only ever one significant fall in home value, 2008.
There are 2 major reasons for this: loose lending standards and cash out refinances.
People could apply for a loan they did not truly qualify for, then take cash out on their home to finance a lifestyle change.
But will we see something similar today?
The chief economist for REALTOR.COM says, “We have learned from history that prices can fall. The more important question is if it’s going to happen right now. And that’s hard to say.”
The last two years have been unprecedented and have led us here. Unprecedented times lead to unknown results.
But one thing we do know, this is not 2008!
If you have any other questions about the market, give me a shout. I’m Chase Gallimore with In the Shoals Realty. And, I want to be your go to resource when it comes real estate in the Shoals.