[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f120sk19we39fs":3,"$ffeh0925h8cuz":42,"$f2emv3tus0uf1":46,"$fbwk2pqjjqsc7":50},{"item":4,"previous":30,"next":36},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":9,"bodyImage":13,"isInfographic":14,"categories":15,"isVideo":14,"videoThumbnail":9,"videoSource":9,"publishedAt":28,"updatedAt":29},4140,"two-reasons-why-todays-housing-market-isnt-a-bubble","Two Reasons Why Today’s Housing Market Isn’t a Bubble","You may be reading headlines and hearing talk about a potential housing bubble or a crash, but it’s important to understand that the data and expert opinions tell a different story. A \u003Ca href=\"https:\u002F\u002Fpulsenomics.com\u002Fsurveys\u002F#home-price-expectations\">recent survey\u003C\u002Fa> from \u003Cem>Pulsenomics\u003C\u002Fem> asked over one hundred housing market experts and real estate economists if they believe the housing market is in a \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F04\u002F21\u002Fwhy-this-housing-market-is-not-a-bubble-ready-to-pop\u002F\">bubble\u003C\u002Fa>. The results indicate most experts don’t think that’s the case \u003Cem>(see graph below)\u003C\u002Fem>:","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130531\u002F20220627-KCM-Share.jpg","You may be reading headlines and hearing talk about a potential housing bubble or a crash, but it’s important to understand that the data and expert opinions tell a different story. A \u003Ca href=\"https:\u002F\u002Fpulsenomics.com\u002Fsurveys\u002F#home-price-expectations\">recent survey\u003C\u002Fa> from \u003Cem>Pulsenomics\u003C\u002Fem> asked over one hundred housing market experts and real estate economists if they believe the housing market is in a \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F04\u002F21\u002Fwhy-this-housing-market-is-not-a-bubble-ready-to-pop\u002F\">bubble\u003C\u002Fa>. The results indicate most experts don’t think that’s the case \u003Cem>(see graph below)\u003C\u002Fem>:\u003C!--more-->\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130532\u002F20220627-MEM-Eng-1.png\">\u003Cimg class=\"aligncenter wp-image-46732\" src=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130532\u002F20220627-MEM-Eng-1.png\" alt=\"Two Reasons Why Today’s Housing Market Isn’t a Bubble | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>\u003Cstrong>As the graph shows, a strong majority (60%) said the real estate market is not currently in a bubble. \u003C\u002Fstrong>In the same survey, experts give the following reasons why this isn’t like 2008:\r\n\u003Cul>\r\n \t\u003Cli>The recent growth in \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F06\u002F16\u002Fhome-price-deceleration-doesnt-mean-home-price-depreciation\u002F\">home prices\u003C\u002Fa> is because of demographics and low inventory\u003C\u002Fli>\r\n \t\u003Cli>Credit risks are low because underwriting and \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F06\u002F01\u002Fwhy-home-loans-today-arent-what-they-were-in-the-past\u002F\">lending standards\u003C\u002Fa> are sound\u003C\u002Fli>\r\n\u003C\u002Ful>\r\nIf you’re concerned a crash may be coming, here’s a deep dive into those two key factors that should help ease your concerns.\r\n\u003Ch4>\u003Cstrong>1. Low Housing Inventory Is Causing Home Prices To Rise\u003C\u002Fstrong>\u003C\u002Fh4>\r\nThe supply of homes available for sale needed to sustain a normal real estate market is approximately \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F04\u002F28\u002Fwhat-you-need-to-know-about-selling-in-a-sellers-market\u002F\">six months\u003C\u002Fa>. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.\r\n\r\nAs the graph below shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F05\u002F12\u002Fwhat-you-actually-need-to-know-about-the-number-of-foreclosures-in-todays-housing-market\u002F\">foreclosures\u003C\u002Fa>), and that caused prices to tumble. Today, there’s still a \u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Fresearch-and-statistics\u002Fhousing-statistics\u002Fexisting-home-sales\">shortage of inventory\u003C\u002Fa>, which is causing ongoing home price appreciation \u003Cem>(see graph below):\u003C\u002Fem>\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130528\u002F20220627-MEM-Eng-2.png\">\u003Cimg class=\"aligncenter wp-image-46729\" src=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130528\u002F20220627-MEM-Eng-2.png\" alt=\"Two Reasons Why Today’s Housing Market Isn’t a Bubble | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a limited supply of homes for sale. Odeta Kushi, Deputy Chief Economist at \u003Cem>First American, \u003C\u002Fem>\u003Ca href=\"https:\u002F\u002Fwww.realtor.com\u002Fnews\u002Ftrends\u002Fhousing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know\u002F\">explains\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“The fundamentals driving house price growth in the U.S. remain intact. . . . The demand for homes continues to exceed the supply of homes for sale, which is keeping house price growth high.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch4>\u003Cstrong>2. Mortgage Lending Standards Today Are Nothing Like the Last Time\u003C\u002Fstrong>\u003C\u002Fh4>\r\nDuring the housing bubble, it was much easier to get a mortgage than it is today. Here’s a graph showing the \u003Ca href=\"https:\u002F\u002Fwww.newyorkfed.org\u002Fmedialibrary\u002Finteractives\u002Fhouseholdcredit\u002Fdata\u002Fpdf\u002Fhhdc_2022q1.pdf\">mortgage volume\u003C\u002Fa> issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the years after:\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130529\u002F20220627-MEM-Eng-3.png\">\u003Cimg class=\"aligncenter wp-image-46730\" src=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130529\u002F20220627-MEM-Eng-3.png\" alt=\"Two Reasons Why Today’s Housing Market Isn’t a Bubble | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>This graph helps show one element of why mortgage standards are nothing like they were the last time. Purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash. \u003Cem>Realtor.com \u003C\u002Fem>\u003Ca href=\"https:\u002F\u002Fwww.realtor.com\u002Fnews\u002Ftrends\u002Fhousing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know\u002F\">notes\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“\u003Cstrong>. . . Lenders are giving mortgages only to the most qualified borrowers. \u003C\u002Fstrong>These buyers are less likely to wind up in foreclosure.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Cstrong>Bottom Line\u003C\u002Fstrong>\r\n\r\nA majority of experts agree we’re not in a housing bubble. That’s because home price growth is backed by strong housing market fundamentals and lending standards are much tighter today. If you have questions, let’s connect to discuss why today’s housing market is nothing like 2008.","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F24130532\u002F20220627-MEM-Eng-1.png",false,[16,20,24],{"id":17,"name":18,"slug":19},5,"For Buyers","buyers",{"id":21,"name":22,"slug":23},6,"For Sellers","sellers",{"id":25,"name":26,"slug":27},9,"Home Prices","home-prices","2022-06-27T10:00:19Z","2023-02-03T15:34:09Z",{"id":31,"slug":32,"title":33,"featuredImage":34,"publishedAt":35,"contentType":10,"isVideo":14},4134,"why-an-agent-is-essential-when-pricing-your-house-infographic","Why an Agent Is Essential When Pricing Your House [INFOGRAPHIC]","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F23153132\u002F20220624-KCM-Share.png","2022-06-24T10:00:08Z",{"id":37,"slug":38,"title":39,"featuredImage":40,"publishedAt":41,"contentType":10,"isVideo":14},4142,"a-key-opportunity-for-homebuyers","A Key Opportunity for Homebuyers","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F06\u002F27143604\u002F20220628-KCM-Share.jpg","2022-06-28T10:00:39Z",{"cover":43,"open":44,"shareSpread":45},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",{"cover":47,"open":48,"shareSpread":49},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Magazine-original.png",[51,55,56,57,61,65,66,70,74,78,82,86,90,94,98,102,106,110,114,118,122,126,130,134,138,142,146,150,154,158],{"id":52,"name":53,"slug":54},1,"Uncategorized","uncategorized",{"id":17,"name":18,"slug":19},{"id":21,"name":22,"slug":23},{"id":58,"name":59,"slug":60},7,"Foreclosures","foreclosures",{"id":62,"name":63,"slug":64},8,"Infographics","infographics",{"id":25,"name":26,"slug":27},{"id":67,"name":68,"slug":69},11,"First-Time Buyers","first-time-buyers",{"id":71,"name":72,"slug":73},34,"Senior Market","senior-market",{"id":75,"name":76,"slug":77},35,"Mortgage Rates","mortgage-rates",{"id":79,"name":80,"slug":81},38,"Move-Up","move-up",{"id":83,"name":84,"slug":85},41,"For Sale by Owner","for-sale-by-owner",{"id":87,"name":88,"slug":89},42,"Featured","featured",{"id":91,"name":92,"slug":93},45,"New Construction","new-construction",{"id":95,"name":96,"slug":97},52,"Luxury \u002F Vacation","luxury--vacation",{"id":99,"name":100,"slug":101},53,"Rent vs. Buy","rent-vs-buy",{"id":103,"name":104,"slug":105},80,"Time-sensitive","time-sensitive",{"id":107,"name":108,"slug":109},81,"Outdated","outdated",{"id":111,"name":112,"slug":113},147,"Internal","internal",{"id":115,"name":116,"slug":117},148,"Do Not Autopost","do-not-autopost",{"id":119,"name":120,"slug":121},320,"Inventory","inventory",{"id":123,"name":124,"slug":125},321,"Agent Value","agent-value",{"id":127,"name":128,"slug":129},322,"Affordability","affordability",{"id":131,"name":132,"slug":133},323,"Buying Tips","buying-tips",{"id":135,"name":136,"slug":137},324,"Downsize","downsize",{"id":139,"name":140,"slug":141},325,"Economy","economy",{"id":143,"name":144,"slug":145},326,"Equity","equity",{"id":147,"name":148,"slug":149},327,"Forecasts","forecasts",{"id":151,"name":152,"slug":153},328,"Selling Tips","selling-tips",{"id":155,"name":156,"slug":157},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":159,"name":160,"slug":161},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]