Many wonder will the housing market crash 2021-2022? Some say it will get worst before it get's better. First time buyers suffered from interest rates spiking for two consecutive months. Many lenders have cut staff. Unlike and among what has happened in the 2005-2008 era of the housing market with bad lending practices that suffered America. Lending standards are tighter than ever due to lessons learned and new regulations enacted after the last crisis such as no doc loans were at an all-time high in that economic housing market which led to foreclosures along with falling prices. Click this link to see what cities may take the biggest price drops https://www.newsweek.com/cities-biggest-price-drops-housing-market-crash-1767169
You surely do not see Central Florida anywhere. This reflects we are projected to remain stabilized.
This lead to many homeowners walking away from their distressed homes with a drastically lower vale. Many are gambling that the market will crash and some gambling it wont crash. Lending practices was a major leader in that crisis. Click here for more information about recession /ARE-WE-IN-A-RECESSION---32819---32836---Central-Florida-6-22139.html
Fast forward, unlike the 2005-2008 market crash there is record level equity in millions of homes across America. Home values nearly doubled. This did not happen in the market crash 2005-2008. There were ton's of short sales and foreclosures and safety measures were not in place as they are now that prevented faulty loans. Forbearances kept millions of families in homes due to surge in equity. This is completely opposite of the market crash of 2005-2008.
Homeowners continue to benefit from the now slowly rising home prices. Record level of home equity provide financial security for millions of homeowners, which minimizes the chances of another housing market crash like the one we saw in 2008. There is no over supply of homes in today's housing market.
Experts say again the housing market is less likely to crash, because what is happening now is a complete opposite of what has happened in the last housing bubble and market crash.
Homeowners today are equity richer than ever! Click here to learn about home equity /HOME-EQUITY---32819---32836---Orlando-Florida-6-20253.html
As of 2021 experts say today's market is fundamentally different in many ways, There is no oversupply of homes for sale, we have learned that lending standards are much tighter and homeowners have record level of equity. This shows the results that there won't be a wave of foreclosures and banks can easily work with homeowners.
There is a housing shortage of homes on the market today. The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will cause prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.
Historical data, there were too many home for sale during the housing crisis 2005-2008 that were reported as short sales and foreclosures that caused prices to tumbled rapidly.
Facts speaks for itself. These graphs shown from the National Association of Realtor's relates to show how this time compares to the market crash with today a 3 month supply of homes. As for new construction homes for sale across America, many buyers have had their contracts canceled due to interest rates that disqualified a host of buyers. Now that the Feds have taken drastic measures in June, July and September of 2022 with rate spikes of .75% they are daunting to reduce inflation. Prices on homes in Florida will not continue to increase drastically due to rise in the interest rates. We are in a market correction. More remains to be seen. Click here to learn more /HOUSING-MARKET-CORRECTING---32819---32836---Dr-Phillips-6-22828.html
These graphs should help alleviate your fears and concerns.
Wether you are looking to buy or sell a home stay connected and contact your trusted advisor and professional realtor as myself today at 407 479-8583 to stay on the pulse of the market. Serving Dr Phillips and Central Florida. Click here to learn more about Kevin Strawter /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html
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