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Is the House Problem Speculation or Lack of Supply?

October 24,2023 | Posted By Dinorah Carmenate in re
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I came across this article which compares today’s market to 2006 – 2008.

Remember the “Great Recession” where the housing market collapsed with the average loss of equity to homeowners being 30% and in some areas even more?
 
Although today's housing market is "somewhat" similar to the frantic market of 2006-2008, I do see a lot of similarities but I don’t see a market collapse of that nature.  The main thing I see similar is that there are not enough listings on the market today to meet with the buyer’s demands . . . despite the high interest rate.  One thing this "expert" failed to explain is that from 2006 to 2008, the economy was not in a slump like it is today which also changed the housing market.  

While there were few houses for all of the purchasers trying to buy in 2006-2008, as there are now, all of the buyers were out purchasing homes they could NOT afford because financing was simple and if you could breathe, you qualified for a  home loan.  This is NOT the case today nor has it been the case for the past 13 years.
 
I'm sharing this article with you since it has some excellent points made by this expert and is well worth reading.

I doubt we will see the same degree or length of real estate collapse as we saw in 2006-2008.  I say this because today's buyers are getting loans, and today's sellers have a lot of equity.  As long as our employment market is robust and no ZOMBIES take to the streets, I believe everything will be OK.
 
In my humble opinion.


Read the Article Here
Source: 
www.msn.com


 

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