The housing market is about to crash, just like in 2008.
None of the conditions that caused the 2008 crash are true today. Today almost half of all homeowners have more than 50% equity. The 2020-2022 price increases we saw was driven by low inventory and incredibly low interest rates.
- Owners have such good rates, they will never sell.
In reality, there are always life events that force homeowners to sell. People get new jobs and promotions, have growing families and need more room, or want to be in a particular school district. Retirees opt to downsize or move to a better climate.
- As rates rise, home prices will drop.
Home buyers are “dating the rate and marrying the house.” High interest rates today can be refinanced later on. Today’s home prices will likely be higher when interest rates go down.