05/17/2021
We get this question a lot: “When do you think it’s going to crash again?” I get it. We all have some PTSD from 07/08. But let me assure you, this is not the same. Here’s why:
1. Supply and demand. In 07/08 the average supply of homes on the market was 7 months ( normal by most standards), yet values were still sky rocketing. Today, the supply is under 1.5 months and has been under 5 months for the last 3 years. This will authentically raise values. Big difference.
2. The buyers are actually qualified. In 07/08 your dog could have qualified for home. Obviously we’re kidding, but the approval index was at 886 which is an all time high. Today that same rating is 122.5. People that are buying now, can actually afford the homes they are buying.
3. Equity exists. During the 06-08 housing crisis, more equity lines had been pulled out than ever before. No one had equity. Today, 57.6% of homes have 50% or more equity in their home. Which means, even if they had to sell due to a financial change, they could get out and actually still make money instead of heading to foreclosure...
