After the housing market crash of 2008, many homeowners were left with a sense of impending doom while they wait for the next one. With the current housing market boom, some news seems too good to last. Many looking to buy a house fear the current market could result in a crash just around the corner. Although experts have differing opinions, many feel that a crash isn’t likely
The Current Market
Many people will currently describe the market as a “housing bubble.” This means that the number of people able to afford it who are looking for housing is currently greater than the number of houses available. As a result, house prices are high and cash offers are common. Many individuals are willing to pay thousands above the asking price for their homes. Additionally, low-interest rates are driving renters to look for more permanent living situations. The result is what many describe as the current housing bubble.
However, experts have differing opinions on if this is a housing bubble or simply the new normal. Instead of it being a temporary situation, many feel that the supply and demand may continue for many years to come.
The Future Market
These differing views of the current market have also led to differing views on the future market. Many people feel that the current housing bubble will soon “pop” leading to a crash. However, many experts offer solid evidence that this is not the case.
One reason is the extremely different climate between now and 2008. In 2008, many who were buying homes did so without stability, resulting in them being unable to pay their loans. However, many of those who are purchasing homes today are doing so with credit-worthy loans.
As a result, these experts feel that the market will not crash. Although they expect to see the market level out once the demand for housing becomes reduced, they don’t expect to see a market crash like the one in 2008. Instead of a crash, they expect a plateau with steady prices. However, they still admit that it’s important to prepare for any changes in the market. To do this, owners should speak with a qualified professional.