Tami Savage, Realtor

Your Key to a New Lifestyle

  • Search for Homes
  • Blog
  • About
  • Contact
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

Two Reasons Why Today’s Housing Market Isn’t a Bubble

June 27, 2022 By Tami Savage

Two Reasons Why Today’s Housing Market Isn’t a Bubble

You may be reading headlines and hearing talk about a potential housing bubble or a crash, but it’s important to understand that the data and expert opinions tell a different story. A recent survey from Pulsenomics asked over one hundred housing market experts and real estate economists if they believe the housing market is in a bubble. The results indicate most experts don’t think that’s the case (see graph below):

Is the housing market currently a bubble?  Percent of experts who believe the housing market is a bubble

As the graph shows, a strong majority (60%) said the real estate market is not currently in a bubble. In the same survey, experts give the following reasons why this isn’t like 2008:

  • The recent growth in home prices is because of demographics and low inventory
  • Credit risks are low because underwriting and lending standards are sound

If you’re concerned a crash may be coming, here’s a deep dive into those two key factors that should help ease your concerns.

1. Low Housing Inventory Is Causing Home Prices To Rise

The supply of homes available for sale needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.

As the graph below shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures), and that caused prices to tumble. Today, there’s still a shortage of inventory, which is causing ongoing home price appreciation (see graph below):

Inventory of homes noting like last time (months supply of existing homes for sale in May of each year)

Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a limited supply of homes for sale. Odeta Kushi, Deputy Chief Economist at First American, explains:

“The fundamentals driving house price growth in the U.S. remain intact. . . . The demand for homes continues to exceed the supply of homes for sale, which is keeping house price growth high.”

2. Mortgage Lending Standards Today Are Nothing Like the Last Time

During the housing bubble, it was much easier to get a mortgage than it is today. Here’s a graph showing the mortgage volume issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the years after:

Lending Standards are Tighter Today

This graph helps show one element of why mortgage standards are nothing like they were the last time. Purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash. Realtor.com notes:

“. . . Lenders are giving mortgages only to the most qualified borrowers. These buyers are less likely to wind up in foreclosure.”

Bottom Line

A majority of experts agree we’re not in a housing bubble. That’s because home price growth is backed by strong housing market fundamentals and lending standards are much tighter today. If you have questions, let’s connect to discuss why today’s housing market is nothing like 2008.

Tagged With: For Buyers, For Sellers, Housing Market Updates, Pricing

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Free eGuide. Things to Consider When Buying a Home. Send me this eGuide.

Free eGuide. Things to Consider When Selling Your House. Send me this eGuide.

Tags

Baby Boomers Buying Myths Community Demographics Distressed Properties Down Payments Events First Time Home Buyers Forbearances For Buyers Foreclosures For Sale By Owners For Sellers FSBOs Generation X Generation Z Gen Z Holidays Home Trends Housing Market Updates Infographics Interest Rates Interview Investors Lifestyle Luxury Luxury Home Luxury Market Millennials Move-Up Buyers moving New Construction Pricing relocation Remodel Rent vs Buy Report Reviews Selling Myths Senior Market Short Sales SOLD Tax Refund Veterans Video

About Me

I help homeowners sell their existing home and shift into a home more suitable to their needs in the North Metro Atlanta area (specifically around Cumming, Canton, & Milton). Read More…

Let’s Connect

770-744-2524‬ or
(888) 959-9461 x2543

 

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
The market has been on a roller coaster lately.  Super excited about the mortgage rate drop on August 4, 2022.  So we'll take a moment to look at 
• the mortgage rates week-to-week, 
• review the latest data from NAR on pending and existing home sales, and
• see/hear what some of the experts have stated.

Digital Business Card: https://tamisavage.com/bc  (so you can reach out, find me on social media platforms, and more)
National Housing Market Update August 2022
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_rnqzfAO8BRw
Don't let inflation delay your homebuying plans. Let's connect so you can start the process today.

Source for Data in Video: https://apnews.com/article/key-inflation-report-highest-level-in-four-decades-c0248c5b5705cd1523d3dab3771983b4
How Homeownership Can Help Shield You from Inflation
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_AROdzHn8CQw
Want to know if we’re in a housing market correction right now? 🏡  Check out the video to see what the experts say.  (Decided to do something a bit different and certainly more fun.  Went to Poole's Mill Park (Ball Ground, GA) to shoot this housing market update video.)

🤝 I'm here to help with your real estate goals, so reach out if there's anything I can do.

For more information:
📱   Cell:  (770) 744-2524
☎️ Office:  (888) 959-9461 x2543
📧  tami@tamisavage.com
🌐 www.tamisavage.com


-------------------------------------------------------------------


I'm Tami Savage, a local Realtor® with eXp Realty in Cumming, GA. We lived on the southside of Metro Atlanta in Fayette County, GA (Peachtree City & Fayetteville) for 19 years then moved away for about 5 years.  Georgia recently called us home, we bought a house in west Forsyth this past Winter.  Excited to get to know the area, community, businesses around, and more.  

My goal is to present helpful information with an emphasis on the Real Estate market (of course) but also highlighting Cumming, Canton, Ball Ground, Milton/Alpharetta, and surrounding areas.  

Hit the subscribe button to get real estate info every week. 

Want more info ... 
check out my digital business card:   https://tamisavage.com/bc

📱   Cell:  (770) 744-2524
☎️ Office:  (888) 959-9461 x2543
National Housing Market Update for end of July 2022
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_vl9R6_iverE
Want to know what the future holds for rates, prices, and inventory? Let's connect so you have a trusted advisor to answer your housing market questions.

Sources for Data in Video
• https://www.marketwatch.com/picks/until-inflation-peaks-mortgage-rates-wont-either-we-asked-3-economists-and-real-estate-pros-will-mortgage-rates-climb-higher-this-summer-01655941487
• https://twitter.com/RDC_Economics/status/1542511111852793857
• https://www.bankrate.com/real-estate/housing-market-predictions/
Expert Insights on Where the Housing Market Is Heading
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_HYD_ew9qnzM
Today's market is at a turning point. Let's connect so you have an expert in your corner when you sell your house.
Lean on a Real Estate Expert When You Sell in Today's Shifting Market
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_2Cqf4nsDEuQ
Getting pre-approved is a great opening play as a homebuyer. Let's connect so you have a strategy in place that helps you feel confident in your home search.
Pre-Approval Is a Strategic Move When You're Buying a Home
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_4kbQ0EiCroQ
Is it a good idea to buy a house now? 💰🏡

Check out the video to see what the experts say and see the mortgage changes throughout 2022 so far. 📈

🤝 I'm here to help with your real estate goals, so reach out if there's anything I can do.

For more information:
📱   Cell:  (770) 744-2524
☎️ Office:  (888) 959-9461 x2543
📧  tami@tamisavage.com
🌐 www.tamisavage.com


-------------------------------------------------------------------


I'm Tami Savage, a local Realtor® with eXp Realty in Cumming, GA. We lived on the southside of Metro Atlanta in Fayette County, GA (Peachtree City & Fayetteville) for 19 years then moved away for about 5 years.  Georgia recently called us home, we bought a house in west Forsyth this past Winter.  Excited to get to know the area, community, businesses around, and more.  

My goal is to present helpful information with an emphasis on the Real Estate market (of course) but also highlighting Cumming, Canton, Ball Ground, Milton/Alpharetta, and surrounding areas.  

Hit the subscribe button to get real estate info every week. 

Want more info ... 
check out my digital business card:   https://tamisavage.com/bc

📱   Cell:  (770) 744-2524
☎️ Office:  (888) 959-9461 x2543
National Housing Market Update for mid-July 2022
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_Dqc2-H0E9mU
For the next five years, experts say home prices will continue to rise. Let's connect if you're ready to invest in homeownership and grow your wealth.

Sources used for data:
https://pulsenomics.com/surveys/#home-price-expectations
Home Price Appreciation Helps Build Your Wealth
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_C8vHJlhf4q0
Americans rank homeownership as the top sign of financial success. Let's connect if you're dreaming of buying a home this year.

Read the article: https://tamisavage.com/more-americans-choose-real-estate-as-the-best-investment-than-ever-before/

Sources used for data:
https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/
Homeownership Is Still the American Dream
YouTube Video UCje-ynLSmvEYv1nXUpNTiMw_DhSRSEbnze8
Load More... Subscribe

Calculate Mortgage Payments

Below is a mortgage calculator you may use to help give you an estimate on your monthly payment and other details.

Once calculated, next to the monthly payment on the far right is a small graphic you can click on to see the payment schedule.

Calculate Mortgage Payments

www.mlcalc.com

eXp Realty

Realtor Stellar MLS Equal Opportunity Housing

Copyright © 2019+ Tami Savage LLC. All Rights Reserved. Privacy Policy

DISCLAIMER: The information contained, and the opinions expressed, on this site are NOT intended to be construed as investment advice. Tami Savage LLC does NOT guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should ALWAYS conduct your own research and due diligence and obtain professional advice before making any investment decision. Tami Savage LLC will NOT be liable for any loss or damage caused by your reliance on the information or opinions contained herein.