About 10 years ago, this country went through a very serious housing bubble and price correction. We have recovered from that, and the housing market is now nice and strong. And as I’ve said many times before, we have a severe shortage of inventory. This has driven the home prices up.
However, the market that we’re in today has very little in common with what happened 10 years ago. During the housing crash of about 10 years ago, there was a vast oversupply of housing inventory. Largley this was caused by home builders who were building homes faster than the market would absorb. And then the bigger problem was that the lending standards we’re so lax that basically anyone could get a mortgage. And it was also very easy to get a mortgage for more than they could afford. My son qualified for a $900,000 mortgage 10 years ago. He was waiting tables while he was going to college. Why did he get qualified for so much? His credit was good and he could fog mirror.
We don’t have these issues right now. If anything, Builders are not building enough. And there’s other reasons for that. And lending standards are nowheres near as lax as they were back then.
So even though many homeowners are concerned that their home values may depreciate within the next few years, I don’t think that’s about to happen.
So if you own a home now, and you’re thinking about moving to up to a nicer home, don’t be afraid of another housing bubble getting in the way this time. Go ahead take advantage of the good Market for seller’s, and go find your dream home.