What’s News In Real Estate – Republished from my “Monday Morning Minute” Dated: 10/31/2022

No trick or treat will change the shifting real estate market. … 

We all can agree that the market is shifting … but to calm your fears for what that means for you as a buyer or seller is to understand what it is not …

Some fears of today, and questions that are being asked … are we in a housing bubble? The straight answer to that question is – NO… and below are some of the reasons why experts say it is not … 

Supply & Buyer Demand 

There is still a shortage of homes on the market today – which is the #1 driver of the market. To put things in perspective – during the housing crisis (2007-2010) there were too many homes for sale (many of which were short sales and foreclosures), and that is what caused prices to fall so dramatically. While supply has increased since the start of this year, there is still a shortage of inventory to meet buyer demand. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time, even though some of the overheated markets may experience slight declines in home prices.

Mortgage Standards 

Prior to the housing crisis, it was so much easier to get approved for a home loan then it is today for certain. Back then banks were creating artificial demand by lowering their lending standards to make it easy to qualify for a loan and/or refinance their current home.

During the housing crisis, banks took on greater risk in the borrower and the mortgage products they offered, which led to people defaulting on their loans, foreclosures, and falling prices. Lessons learned in the banking arena … Today, things are much different, and purchasers face much higher standards from mortgage lenders to get themselves qualified for that loan. 


The number of foreclosures in today’s market are much lower since the crash, largely because buyers today are more qualified and less likely to default on their loans due to higher standards in the mortgage industry. 

It is important to note most homeowners today are “equity rich” which is quite the contrary during the housing crisis of yesteryears, when so many people owed more on their mortgages than their home was actually worth. Homeowners today have built-in equity over time, and then in addition to that, built-in equity – add the equity gains of the “market craze of 2020/2021.”

Homeowners in today’s market are in a completely different position then what was during the housing crisis. For those who face challenges today, many have the option of using their equity to sell their house and avoid the foreclosure process.

My best advice for you today… 

Fear not … today’s real estate market may have some challenges, but none that point to the “once was market crash” of years past. Whether you are a buyer or seller … speak with a trusted real estate advisor who will help uncover your fears – answer any/all of your questions … so you can make decisions on what your best move should be in today’s shifting real estate market.


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