Another Real Estate Crash? What is Different in Today's Real Estate Market than 2008?
Is The Housing Market Going To Crash Like It Did In 2008?
Are we going to have a crash in today’s real estate market like we had in 2008? No! Our Market today is totally different than the real estate market that crashed in 2008.
Real Estate markets ebb and flow, but generally real estate is a great opportunity to build wealth. What is different in today’s market that sets it apart from the things that led to the real estate market crash in 2008?
- Loan applications have much closer scrutiny to be sure the Buyers can perform. This is totally different than the “No Doc Days” in the mid-2000s.
- There are more Buyers with real cash down and assets to help secure loans.
- Banks are not allowed to bundle bad loans like they did before.
- The interest rates are still low, allowing Buyers to purchase.
- The job market in the DC Region is very strong.
- We do not have enough houses for the number of people who need a home.
- The amount of equity in people’s homes is strong. Homeowners aren’t upside down like they were in 2008.
There is no way to guarantee what will happen with the economy, but there is a projected 8% increase in home values in 2022. There is likely to be less frenzy in the home buying market, but this is good. Having a stable real estate market is better for everyone.
Most importantly, the greatest indicator of wealth building is real estate ownership. Paying a mortgage is forced savings and generally, paying a mortgage is less expensive than paying rent.
Every market is different, so contact me directly to have a better understanding of your specific market, be it a free-standing house or a condo. I can dive deep to help you understand the real estate market in Washington DC, Maryland, and Virginia.
Daryl Judy, 202-380-7219, Daryl.Judy@WFP.com