Today, we face a very different challenge: an external health crisis that has caused a pause in much of the economy and a major shutdown of many parts of the country. The five things we know about today’s housing market that were different in 2008:
*Appreciation-Prices have been rising lately, but not at the rate they were climbing back when we had runaway appreciation.
*Mortgage Credit- after the housing crash in 2008 lending standards tightened and have remained that way leading up to today.
*Number of Homes for Sale- in 2008 we had an oversupply of homes, today we have an undersupply.
*Use of Home Equity- in 2008 property owners were using the house as an ATM, cash out refi's were all the rage.
*Amount of Home Equity- today 53.8% of homes across the country have at least 50% equity.
Nikki Ryan, Licensed Realtor, KW Virginia
With all of the unanswered questions caused by COVID-19 and the economic slowdown we’re experiencing across the country today, many are asking if the housing market is in trouble. For those who remember 2008, it's logical to ask that question. Many of us experienced financial hardships, lost home