Published June 29, 2021

Is a Housing Crash Imminent?

Written by René Ahmad

Is a Housing Crash Imminent? header image.

Today’s real estate market is incredibly strong, but some are worried.

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As you likely already know, we’ve been experiencing one of the strongest seller’s markets that we’ve seen in a very long time. It’s so strong that some are beginning to wonder if it’s going to continue or if it’s headed downward like the crash of the 2005 housing market.

I can’t see into the future, but I can point out a few things to put your mind at ease. First of all, the 2005 downturn came about largely due to predatory lending practices. People who shouldn’t have been able to secure a mortgage were being approved left, right, and center. We’re not seeing that nowadays, however, since a variety of lending policies and procedures have enhanced the lending process behind today’s mortgages.

"A variety of lending policies and procedures have enhanced the lending process."

Here are three reasons why we’re experiencing such a strong and stable market:

1. Low inventory. With inventory levels at all-time lows, sellers are getting great prices for their homes.

2. Low interest rates. Mortgage rates are the lowest that we’ve ever seen.

3. A drop-off in available new construction homes. During the pandemic, new construction projects have started, stopped, and started again. As a result, any remaining new construction inventory has been sold out in record numbers.

If you have any questions about the real estate market, don’t hesitate to reach out to me via phone or email. I’d love to help you.