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Why This Housing Market Is Not Like 2008 in Waldorf, MD - Skip Young
Dated: July 3 2020
There are so many questions swirling around today about where the housing market is headed amid this economic slowdown. In order to best understand the current state of the market and how expert projections may play out, it’s best to look at our economic history, and how today is vastly different than the housing crisis of 2008, known as the Great Recession.
Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession – the recession that started with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that caused a pause in the economy and a major shutdown in many parts of the country.
- Home Price Appreciation
- Mortgage Credit Availability
- Home Price Appreciation
- Use of Home Equity
- Number of Homes for Sale
1. Home Price Appreciation
When we look at appreciation in the visual here, there’s a big difference between the 6 years prior to the housing crash and the most recent 6-year period. Leading up to the crash, we had much higher appreciation in this country than we had coming into this year. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices were rising going into this economic slowdown, but not at the rate they were climbing back when we had runaway appreciation.
2. Mortgage Credit Availability
The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way ever since.
3. Number of Homes for Sale
One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory – an undersupply of homes available for buyers
4. Use of Home Equity
The next chart shows the difference in how people are accessing the equity in their homes today as compared to the period leading up to the housing crash. Back then, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance high-end lifestyles. Today, consumers are treating the equity in their homes much more responsibly.
5. Home Equity Earned
Today, 58.7% of homes across the country have at least 60% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to foreclose ontheir homes.
Mortgage rates are hovering near historic lows and prices are not forecasted to depreciate. If you’re thinking about buying a home, now may be a great time to lock in a low mortgage rate and make your next move.
Waldorf Maryland Realtor® - Skip Young Realtor®Your Waldorf MD Realtor® - Skip Young
Stationed here and are looking to purchase or sell a home please contact Skip Young Realtor®:
Skip Young Realtor® with Reviews as a Realtor®, has an extensive background in working with an Elite Unit while serving his country from 91 - 94. Now an Award-winning Realtor®, located in Waldorf MD, has proven not just in the ranks of the field with an Elite unit in the Army, but also in the Maryland Real Estate Business. By working with every type of client, to include active duty and veterans alike. His dedication to helping those who are serving and need to use their VA loan, need information on leasing a property due to a short-term duty station at any one of the bases here in the Washington DC, Maryland or Virginia. Military bases such as:
There are currently 23 million veterans and service members right in your local community of Washington DC, Maryland, and Virginia. They transact over $153 billion annually in the Local Real Estate purchases and Selling of Property, along with the Rental Market. Learn how you can help tap into and serve the veteran community with VAREP, the Greater Annapolis Chapter. Skip Young your Waldorf MD Realtor® and Veteran is still continue's to serve my country by helping our community of brothers and sisters by representing the Government Affairs division. The position is about assisting in changing the laws that help protect veterans and service members who need to find housing in the Washington DC Maryland and Virginia area.
Skip Young | EXP Realty | Waldorf MD Realtor®
Realtor®, Veteran, New Home Sales
888-860-7369 x 240 Broker
137 National Plaza, Suite 300
National Harbor, MD 20745
Waldorf MD Realtor® | Veteran | eXp Realty | Author | VAREP Director of Government Affairs Greater Annapolis Chapter
Waldorf MD Homes for Sale Are you are stationed here and are looking to purchase or sell a home please contact Skip Young Realtor®: Marine Barracks Joint Base Anacostia-Bolling PSD Washington, DC....
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