Is The Housing Crash Coming Soon? | Market Update

Home prices are soaring but does this mean the housing crash is coming? Manuel Sanchez here with your real estate market report


Lets take a step back to the year 2000, when homeowners were sitting back watching their home value skyrocket to the heavens. It seemed like the housing market was unstoppable. Then.. it all came tumbling down with the beginning of the subprime meltdown in March of 2007. Values dropped like a rock, many lost their homes to foreclosures or short sales. I wasn’t in real estate at the time but I do remember graduating from high school into the world of the great recession. I wasn’t a home owner yet but I knew people who were directly affected by the collapse. Jobs were scarce and the housing world was dark for home owners.

Fast forward to present time 2021 and the housing market is soaring upward with seemingly no end in sight. Buyers are tripping over each other, willing to pay tens of thousands of dollars above asking price. Throw in the news of rising inflation and the potential of drastically higher mortgage rates.. and I mean the madness must come to a screeching halt right? Well even though so many are anticipating and reporting that a housing crash is eminent, its simply not going to occur, not now, not in the next 6 months and not in the foreseeable future.

Contrary to today The Great Recession was triggered by the housing market where anyone could purchase a home regardless of their true qualifications. Zero down payment loans, cash out refinancing, subprime lending and chicken scratch loan documents all contributed to the astonishing rise in values that inflated the housing bubble.

What occurred can be explained by looking at supply and demand. When supply rises and demand drops, the unsold inventory climbs. When supply drops and demand rises, the unsold inventory falls. The housing data illustrated market conditions that were lining up in favor of buyers. As a result the unsold inventory rose to extreme heights. In April of 2006 the average time on market was 180 days and it grew to 294 days by September.

Contrast that to today and the landscape is entirely different. The inventory is at record low levels and demand is off the charts. Todays average time on market for San Diego County is 45 days and it will remain a hot sellers market for the remainder of the year.

The bottom line is the housing market is not going to crash.. the inventory is low, demand is high, market times are at all time low, mortgage rates are still remaining low and homeowners have plenty of equity. So don’t believe the news that want to be the first to say “I told you so” . If selling your house has crossed your mind, right now is the time to do it! We are headed into summer and it will definitely be thee best time to sell. I for one just listed a property that sold in the first weekend of showings for well over list price. So if your ready to sell now would be a good time.

I am your source for real estate in San Diego and surrounding areas. Looking to purchase a new home? Avoid feeling overwhelmed and use my experience and knowledge to find the home of your dreams. Thinking of selling? Exposure is everything. Leverage my experience and marketing tools to turn "selling" into "sold". Have questions? I'm here to help find answers and provide insights into the local area.

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CONTACT:
Manuel Sanchez Realtor
Compass San Diego
619-874-1044
manuel@sellwithmanuel.com
DRE 02018479
www.SellWithManuel.com

#housingcrash #housing2021 #marketupdate