Our market isn’t in danger of crashing, and there are four reasons why.
A lot of people have been worried about a potential housing market crash; we hear questions about it nearly every day. To help put these fears to rest, today we’ll be going over four reasons why a crash is simply impossible in our nationwide market:
1. Inventory: Our inventory levels are the lowest they’ve been in over 20 years, which is the main reason why prices are high. It’s all a matter of supply and demand, and since there are few sellers but many eager buyers, prices have skyrocketed.
2. Economy: As we’ve transitioned into a post-pandemic period, we’ve seen a huge economic recovery. Unemployment rates are low, income and wages are increasing, and the economy is very strong.
3. Demand: Again, we’re still seeing large amounts of pent-up demand. This demand actually stems from the recession, when new home construction slowed down for several years. For a while, there weren’t enough homes being built, and builders still haven’t been able to keep up with the number of would-be buyers.
4. Lending practices: After the last housing crash, a number of policies and guidelines were implemented to ensure lenders would be more responsible with mortgages. Now, they’ll verify income, check tax returns, and much more to ensure buyers are truly qualified.
We hope we’ve given you a better understanding of why our market isn’t in jeopardy of crashing. If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you soon.