[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f1k2ypd5nnch9e":3,"$ffeh0925h8cuz":43,"$f2emv3tus0uf1":47,"$fbwk2pqjjqsc7":51},{"item":4,"previous":31,"next":37},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":29,"updatedAt":30},15192,"why-todays-housing-market-is-not-about-to-crash","Why Today’s Housing Market Is Not About To Crash","\u003Cp>\u003Cspan style=\"color: rgb(0, 0, 0);\">There’s been some concern lately that the housing market is headed for a crash.\u003C\u002Fspan>\u003C\u002Fp>","","blog","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-why-todays-housing-market-is-not-about-to-crash.jpg","\u003Cp>There’s been some concern lately that the housing market is headed for a crash. And given some of the \u003Ca href=\"\u002F2023\u002F04\u002F26\u002Fthe-three-factors-affecting-home-affordability-today\u002F\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">affordability\u003C\u002Fa> challenges in the housing market, along with a lot of \u003Ca href=\"\u002F2023\u002F05\u002F02\u002Fa-recession-doesnt-equal-a-housing-crisis-2\u002F\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">recession\u003C\u002Fa> talk in the media, it’s easy enough to understand why that worry has come up.\u003C\u002Fp>\u003Cp>\u003Cstrong>But the data clearly shows today’s market is very different than it was before the housing crash in 2008. Rest assured, this isn’t a repeat of what happened back then. Here’s why.\u003C\u002Fstrong>\u003C\u002Fp>\u003Ch4>\u003Cstrong>It’s Harder To Get a Loan Now\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Back then, banks had different lending standards, making it easy for just about anyone to qualify for a home loan or refinance an existing one. As a result, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.\u003C\u002Fp>\u003Cp>Things are different today as purchasers face increasingly higher standards from mortgage companies. The graph below uses \u003Ca href=\"https:\u002F\u002Fwww.mba.org\u002Fnews-and-research\u002Fnewsroom\u002Fnews\u002F2023\u002F04\u002F11\u002Fmortgage-credit-availability-increased-in-march\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">data\u003C\u002Fa> from the \u003Cem>Mortgage Bankers Association\u003C\u002Fem> (MBA) to show this difference. The lower the number, the harder it is to get a mortgage. The higher the number, the easier it is.\u003C\u002Fp>\u003Ch4>\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-lending-regulations-are-steady.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-lending-regulations-are-steady.png\">\u003C\u002Fa>\u003Cstrong>Unemployment Recovered Faster This Time\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>While the pandemic caused unemployment to spike over the last couple of years, the jobless rate has already recovered back to pre-pandemic levels (\u003Cem>see the blue line in the graph below\u003C\u002Fem>). Things were different during the Great Recession as a large number of people stayed \u003Ca href=\"https:\u002F\u002Ffred.stlouisfed.org\u002Fseries\u002FUNRATE\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">unemployed\u003C\u002Fa> for a much longer period of time (\u003Cem>see the red in the graph below\u003C\u002Fem>):\u003C\u002Fp>\u003Cp>\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-length-of-crisis-different-than-last-time.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-length-of-crisis-different-than-last-time.png\">\u003C\u002Fa>\u003C\u002Fp>\u003Cp>Here’s how the quick job recovery this time helps the housing market. Because so many people are employed today, there’s less risk of homeowners facing hardship and defaulting on their loans. This helps put today’s housing market on stronger footing and reduces the risk of more foreclosures coming onto the market.\u003C\u002Fp>\u003Ch4>\u003Cstrong>There Are Far Fewer Homes for Sale Today\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>There were also too many homes for sale during the housing crisis (many of which were short sales and \u003Ca href=\"\u002F2023\u002F04\u002F27\u002Fwhy-todays-foreclosure-numbers-are-nothing-like-2008\u002F\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">foreclosures\u003C\u002Fa>), and that caused prices to fall dramatically. Today, there’s a shortage of inventory available overall, primarily due to years of underbuilding homes.\u003C\u002Fp>\u003Cp>The graph below uses data from the\u003Cem> \u003C\u002Fem>\u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Fresearch-and-statistics\u002Fhousing-statistics\u002Fexisting-home-sales\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">\u003Cem>National Association of Realtors\u003C\u002Fem>\u003C\u002Fa> (NAR) and the \u003Ca href=\"https:\u002F\u002Ffred.stlouisfed.org\u002Fseries\u002FHOSSUPUSM673N\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">\u003Cem>Federal Reserve\u003C\u002Fem>\u003C\u002Fa> to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 2.6-months’ supply. There just isn’t enough inventory on the market for home prices to come crashing down like they did in 2008.\u003C\u002Fp>\u003Cp>\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-housing-supply-is-lower-than-before.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-housing-supply-is-lower-than-before.png\">\u003C\u002Fa>\u003C\u002Fp>\u003Ch4>\u003Cstrong>Equity Levels Are Near Record Highs\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>That low inventory of homes for sale helped keep upward pressure on home prices over the course of the pandemic. As a result, homeowners today have near-record amounts of equity (\u003Cem>see graph below\u003C\u002Fem>):\u003C\u002Fp>\u003Cp>\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-americans-have-record-amounts-of-equity.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-americans-have-record-amounts-of-equity.png\">\u003C\u002Fa>\u003C\u002Fp>\u003Cp>And, that equity puts them in a much stronger position \u003Ca href=\"https:\u002F\u002Ffred.stlouisfed.org\u002Fseries\u002FOEHRENWBSHNO#0\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">compared\u003C\u002Fa> to the Great Recession. Molly Boesel, Principal Economist at \u003Cem>CoreLogic\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Fwww.corelogic.com\u002Fintelligence\u002Floan-performance-insights-january-2023\u002F\" rel=\"noopener noreferrer\" target=\"_blank\" style=\"color: rgb(5, 99, 193);\">explains\u003C\u002Fa>: \u003C\u002Fp>\u003Cblockquote>\u003Cem>“\u003C\u002Fem>\u003Cstrong>\u003Cem>Most homeowners are well positioned to weather a shallow recession. \u003C\u002Fem>\u003C\u002Fstrong>\u003Cem>More than a decade of home price increases has given homeowners record amounts of equity, which protects them from foreclosure should they fall behind on their mortgage payments.”\u003C\u002Fem>\u003C\u002Fblockquote>","\u003Cp>The graphs above should ease any fears you may have that today’s housing market is headed for a crash. The most current data clearly shows that today’s market is nothing like it was last time.\u003C\u002Fp>","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230508\u002F20230509-lending-regulations-are-steady.png",false,[17,21,25],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},6,"For Sellers","sellers",{"id":26,"name":27,"slug":28},7,"Foreclosures","foreclosures","2023-05-09T10:30:00Z","2023-05-09T10:30:26Z",{"id":32,"slug":33,"title":34,"featuredImage":35,"publishedAt":36,"contentType":10,"isVideo":15},15188,"it-may-be-time-to-consider-a-newly-built-home","It May Be Time To Consider a Newly Built Home","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230505\u002F20230508-it-may-be-time-to-consider-a-newly-built-home.jpg","2023-05-08T10:30:00Z",{"id":38,"slug":39,"title":40,"featuredImage":41,"publishedAt":42,"contentType":10,"isVideo":15},15195,"the-impact-of-inflation-on-mortgage-rates","The Impact of Inflation on Mortgage Rates","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230509\u002F20230510-the-impact-of-inflation-on-mortgage-rates.jpg","2023-05-10T10:30:00Z",{"cover":44,"open":45,"shareSpread":46},"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":48,"open":49,"shareSpread":50},"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",[52,56,57,58,59,63,67,71,75,79,83,87,91,95,99,103,107,111,115,119,123,127,131,135,139,143,147,151,155,159],{"id":53,"name":54,"slug":55},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":22,"name":23,"slug":24},{"id":26,"name":27,"slug":28},{"id":60,"name":61,"slug":62},8,"Infographics","infographics",{"id":64,"name":65,"slug":66},9,"Home Prices","home-prices",{"id":68,"name":69,"slug":70},11,"First-Time Buyers","first-time-buyers",{"id":72,"name":73,"slug":74},34,"Senior Market","senior-market",{"id":76,"name":77,"slug":78},35,"Mortgage Rates","mortgage-rates",{"id":80,"name":81,"slug":82},38,"Move-Up","move-up",{"id":84,"name":85,"slug":86},41,"For Sale by Owner","for-sale-by-owner",{"id":88,"name":89,"slug":90},42,"Featured","featured",{"id":92,"name":93,"slug":94},45,"New Construction","new-construction",{"id":96,"name":97,"slug":98},52,"Luxury \u002F Vacation","luxury--vacation",{"id":100,"name":101,"slug":102},53,"Rent vs. Buy","rent-vs-buy",{"id":104,"name":105,"slug":106},80,"Time-sensitive","time-sensitive",{"id":108,"name":109,"slug":110},81,"Outdated","outdated",{"id":112,"name":113,"slug":114},147,"Internal","internal",{"id":116,"name":117,"slug":118},148,"Do Not Autopost","do-not-autopost",{"id":120,"name":121,"slug":122},320,"Inventory","inventory",{"id":124,"name":125,"slug":126},321,"Agent Value","agent-value",{"id":128,"name":129,"slug":130},322,"Affordability","affordability",{"id":132,"name":133,"slug":134},323,"Buying Tips","buying-tips",{"id":136,"name":137,"slug":138},324,"Downsize","downsize",{"id":140,"name":141,"slug":142},325,"Economy","economy",{"id":144,"name":145,"slug":146},326,"Equity","equity",{"id":148,"name":149,"slug":150},327,"Forecasts","forecasts",{"id":152,"name":153,"slug":154},328,"Selling Tips","selling-tips",{"id":156,"name":157,"slug":158},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":160,"name":161,"slug":162},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]