Description: Though Covid-19 has certainly caused a massive slowdown in the market- mainly due to a lack of home sellers listing their homes- assuming that this will turn into a replay of the 2008 crisis is likely inaccurate.
There has been a lot of concern that the COVID-19 Outbreak will incite a real estate market nosedive similar to what happened in the 2008 Housing Crisis. Though COVID-19 has certainly caused a massive slowdown in the market- mainly due to a lack of home sellers listing their homes- assuming that this will turn into a replay of the 2008 crisis is likely inaccurate.
As of right now, our real estate market doesn’t look anything like the 2008 market for four reasons: lower inventory levels, stronger mortgages, mortgage companies and government-sponsored enterprises are already proactively working with people, and unprecedented government intervention.
The amount of homes for sale is by far the leading indicator to tell us what’s going on in the market. Always remember real estate values and the entire industry is simply based on supply and demand. In 2008, the housing market started to crumble as inventory rose so high that almost no sellers could sell their homes. List prices subsequently declined which brought home values with them. People were upside down on their mortgages with no hopes of selling for anywhere near what they paid if they bought t