No Crash Coming
Housing data illustrates that there is not a housing crash on the horizon.
Once again, housing is soaring upward with seemingly no end in sight. Buyers are tripping over each other, willing to pay tens of thousands of dollars above the asking price. Throw in the news of rising inflation and the potential of drastically higher mortgage rates, the madness must come to a screeching halt soon, right? Even though so many are anticipating and reporting that a housing crash is eminent, it simply is not going to occur, not now, not in the next 6-months, and not in the foreseeable future.
The Great Recession was triggered by the housing market where anyone could purchase a home regardless of their true qualifications. Zero down payment loans, negative ARM’s, cash out refinancing, subprime lending, and fudged loan documents all contributed to the astonishing rise in values that inflated the housing bubble that ultimately collapsed in 2007. The housing market crashed, and home values plunged.
Contrast that to today and the landscape is entirely different. The inventory is at unprecedented record low levels and demand, fueled by historically low rates below 3%, is off the charts. Today’s Expected Market Time in Orange County is at 22 days, an extremely crazy, nutty, Hot Seller’s Market (below 60-days), where home values are surging higher every month, sellers get to call the shots, and most home sales are closing well above their asking prices. It will remain a Hot Seller’s Market for the remainder of the year based on the anemic inventory and today’s crazy demand
The bottom line: The housing market is NOT going to crash.
Click on the image below the Read the Orange County Housing Report.