09/18/2021
Home prices are being driven up with bidding wars 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 reasons though that this market is totally different than the housing bubble we experienced a little over a decade ago...
1. Housing supply is extremely limited
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.
2. Homebuyers are more creditworthy
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.
3. Homes have equity
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.
I'm available to talk about how today's low rates make this a great time to consider buying a home, especially as values continue to increase. Reach out anytime!
