Posts from August 21st, 2018
Subscribe and receive email notifications of new blog posts.
RSS Feed
- 2024 | 5 Posts
- 2023 | 37 Posts
- 2022 | 43 Posts
- 2021 | 31 Posts
- 2020 | 29 Posts
- 2019 | 17 Posts
- 2018 | 22 Posts
- 2017 | 14 Posts
- 2016 | 23 Posts
- 2015 | 12 Posts
- 2014 | 2 Posts
21
Comparison of Housing Market Between 2008 and 2018 Simplified
Some are attempting to compare the current housing market to the market leading up to the "boom and bust" that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.
However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.
A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand d...