Is Waiting for a Real Estate Market Crash Worth the Risk? Experts Weigh In
Are you one of those who have been holding off on your next real estate move...
waiting for the market to CRASH?📉
It's understandable to feel hesitant, given the 2008 housing market crash that led to a devastating economic recession. BUT the good news is that the housing market is currently in a much different state than it was in 2008.
In fact, there are compelling reasons why the housing market is NOT going to crash anytime soon...
➡️ Lending standards have tightened
One significant reason why the current housing market is different from 2008 is the tighter lending standards that exist today.
In the past, it was relatively easy to qualify for a home loan, even if you didn't have a steady income or a substantial down payment. This lax lending led to many people taking out mortgages they couldn't afford, which ultimately contributed to the crash.
Today, lenders have implemented stricter guidelines for borrowers, which means that only qualified buyers are approved for loans. This results in fewer risky loans being given out, and buyers who are more financially stable and better able to handle their mortgage payments.
➡️ Home price gains have resulted in near-record amounts of equity
Another reason why the housing market is not going to crash anytime soon is the near-record amounts of equity homeowners have gained over the years.
As home prices have increased, so has the value of homeowners' equity. This equity puts homeowners in a much stronger position, giving them the ability to sell their homes for more money, refinance at a lower interest rate, or even take out a home equity loan.