Is This Market Going to Crash?

David Brough Are We in a Bubble

This market situation is different from what we saw in 2007.

When looking at home prices from just a few years ago compared to today, it’s clear that there has been a ton of growth. This has led many people to be concerned that we’re in a housing bubble and when it might burst. People are worried that this bubble will pop just like it did in 2007.

However, experts don’t believe we’re in the middle of a bursting bubble. Many things that were happening back then are not happening now. For example, at that time, there were a lot of subprime mortgages given out to borrowers with credit scores of below 620.

Today there are not nearly as many of those types of loans, and it’s a different lending environment altogether. There is an extreme shortage of inventory on the market right now, and Americans have so much equity in their homes. 25% of all U.S. homes are owned and clear of a mortgage. The likelihood of people just walking away from a ton of equity because of a hardship is very slim.

If you have any questions or want a professional opinion on the value of your home, reach out to us. We will be happy to help you.

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