We Are NOT Heading for a Mortgage Crash
Did you know…
67% of Americans say a housing market crash is imminent in the next three years. With all the talk in the media lately about shifts in the housing market, it makes sense why so many people feel this way. But there’s good news. Current data shows today’s market is nothing like before the housing crash in 2008. And I remember. I started my mortgage-originating journey in 2007!
Back Then, Mortgage Standards Were Less Strict
During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance an existing one.
Today, things are different, and purchasers face much higher standards from mortgage companies. Tighter lending standards have helped prevent a situation that could lead to a wave of foreclosures like the last time. Foreclosure activity has been lower since the crash, mainly because buyers today are more qualified and less likely to default on their loans. So even as foreclosures tick up, the total number remains very low.
Today, unsold inventory sits at just 2.7 months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down as they did last time. If recent headlines have you worried we’re headed for another housing crash, the data above should help ease those fears.
Expert insights and the most current data clearly show that today’s market is nothing like it was last time.
If you’re ready to see if now is the right time for you to buy again or for the first time – give us a call! 903.202.2800 Don’t just live next door, Be My Neighbor! #realestate #homeownership #homebuying #realestategoals