What Changing Conditions Mean for You
With all the uncertainty in our housing market, people are concerned about a potential crash. For many, it is an unsettling reminder of the last housing crisis back in 2008. But is a market crash truly in our future? We don’t think so. Today we’ll lay out the differences between the conditions in today’s market and those of the Great Recession to help you better understand what’s going on and put some of your fears to rest.
President at Platform Five
2 年Great video, Victoria. 2008 vs today is very much an apples and oranges comparison. I took my first loan with countrywide in 2006 and boy that was a life lesson. But I digress.. Supply chain issues, soaring labor costs and availability of raw materials will keep the market high since the new build or replacement cost of any home today has skyrocketed. The latter are creating an “irreplaceable” feeling when it comes to the valuation of finished homes (like the one my wife and I just finished last year) and the same can be said for older homes with materials you can’t even put your hands on today. In my view, all the interest rate hikes are doing is artificially softening demand by keeping potential homeowners in the renter category. Imo.. A true correction of the market can only happen when the supply issues are resolved with material flow and build costs coming down. With new housing starts slowing down- the opposite is happening. But then again, a potential recession can also change the market in a way that will bring prices down. All in all, it will take more than current rate hikes to change the market. Give us some cheap 2x4’s. My two cents :)