05/22/2021
๐ก Home prices are being driven up with bidding wars ๐ฐ and a lack of inventory, and that can be scary. So scary in fact that it may discourage some folks from looking to buy a home now, afraid that we are in a housing bubble.
Here are 3 reason that this market is totally different than the housing bubble we experienced just over a decade ago...
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Inventory of homes for sale is currently running at less than 2 months, a historic low. A healthy inventory is about 6 months, and in 2008 we were actually up to as high as 11 months inventory.
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In 2008, when the housing market crashed, mortgage standards were at an all time low for credit scores and down payment requirements, as well as proving income and assets to purchase. Current guidelines are much stricter, making the borrowers more financially secure.
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Homeowners were pulling out equity back in 2008, causing many to be upside down. This time around equity levels are extremely high, meaning that homeowners could see values decline slightly without concern.
Iโm available to share with you how this is a great time to consider buying or selling a home, especially as values continue to increase. Reach out to me anytime!
Dina Stepanova, NC/SC REALTORยฎ
