• Menu
  • About
  • REVIEWS

KAYE SWAINKAYE SWAIN

Kaye Swain Roseville REALTOR - Specializing in Over 55 Communities in Roseville CA Area

9167680127
KayeSwainRE@gmail.com
  • Menu
  • HOME
  • Blog
  • Roseville CA
  • Retirement
  • real estate update
  • Brand New Homes
  • Homes For Sale
  • Home Value
  • Sell home
  • virtual home tour
  • Homes sold

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

Thank you for sharing....

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

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):

Two Reasons Why Today’s Housing Market Isn’t a Bubble | Simplifying The MarketAs 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):

Two Reasons Why Today’s Housing Market Isn’t a Bubble | Simplifying The MarketInventory 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:

Two Reasons Why Today’s Housing Market Isn’t a Bubble | Simplifying The MarketThis 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.

 

Posted in: Real Estate Info Tagged: real estate, Real Estate Market, real estate news

Post navigation

« April – June 2022 Real Estate Market Update for Roseville
A Key Opportunity for Homebuyers »
Kaye Swain REALTOR in Roseville CA real estate news and services including aging in place-multigenerational boomers and seniors old and vintage houses and first time home buyers

Hi and Welcome to KayeSwain.com.

Are you looking for homes for sale in Roseville CA and the surrounding area? I appreciate your stopping by and invite you to check out the various options available - from blog posts to inform you about this lovely Greater Sacramento Valley Area, to home searches you can set up - such as homes for sale Roseville, Lincoln, Rocklin, Granite Bay, Citrus Heights, Carmichael, Fair Oaks, etc, to fun real estate eye candy and more. And yes! This is true for residential neighborhoods, condo communities, and all of our lovely 55+ active senior retirement communities. If you have any questions about buying OR selling your home in Roseville or the surrounding Sacramento area, do give me a buzz at 916-768-0127 or email us at KayeSwainRE@gmail.com We're here to help you and your family with your real estate needs.

Kaye Swain Sun City Roseville Real Estate Agent

Search for Homes for Sale

Search KayeSwain.com

Search for:

Click here and sign up to get my free weekly emails where I share Roseville and Sacramento area updates, fun events, holiday happenings, real estate market info, and more. KayeSwain.com/free-weekly-area-updates

Search New Construction Home Listings

See What’s New Today

Oops! Please enter a valid location (city, zip code or school district) or community name.

Powered by  www.showingnew.com/kayeswain

Tags

55+ senior retirement homes 95747 aging-in-place aging in place for boomers and seniors aging in place options boomers and seniors Brand New Homes buy or sell a home Citrus Heights Corona Virus Del Webb The Club At Westpark golf course home sellers homes for sale homes for sale in Citrus Heights homes for sale in Lincoln homes for sale in Rocklin homes for sale Rocklin CA homes for sale Roseville CA Homes sold multigenerational open house Placer County real estate Real Estate Market Real Estate Market Update real estate news real estate update restaurants Retirement Rocklin Roseville Roseville CA Sacramento Sacramento County seasons Silverado Homes at Eskaton Village Sun City Lincoln Hills Sun City Roseville Sun City Roseville Homes for Sale virtual home tour weather weekly market stats West Roseville winter

Search KayeSwain.com

Search for:

CLICK HERE for free weekly emails where I share Roseville and Sacramento area updates, fun events, holiday happenings, real estate market info, and more. KayeSwain.com/free-weekly-area-updates

CLICK HERE to read our blog
CLICK HERE to read RosevilleCaliforniaJoys.com

Resources for Buyers

The Ultimate Home Buyer's Guide

Resources for Home Sellers

Click here for Kaye Swain’s ebook -> Your Home Sellers Guide 

 

 

Resources for Boomers and Seniors

  • Seniors First Resource Guide
  • John Palley,Attorney – Certified Specialist in Estate Planning, Trust and Probate Law – offers an excellent and free book you can download as a pdf – “How to Live & Die With California Probate.” (Scroll to the bottom of his page and click the photo of the book)

 

RSS Roseville California Joys Blog – Latest Posts

  • Spring and Easter Fun Things To Do In Roseville CA Area
  • Good Info and Interesting Things To Do In Roseville CA Area

CONTACT US

9167680127
KayeSwainRE@gmail.com
Christian Kaye Swain real estate agent blogger in Sacramento Roseville CA first time home buyers boomers seniors 700 700 with kw logo
© 2023 · Equity Framework
Kaye Swain Roseville Real Estate Agent, 916-768-0127, KayeSwainRE@gmail.com, CalBRE#01966207, with Keller Williams Realty, 548 Gibson Drive, Suite 200, Roseville CA 95678, (Each office is independently owned and operated)

If you have a brokerage relationship with another agency, this is not intended as a solicitation. Equal Opportunity Housing Provider.

Use of this site means you agree to the Metrolist Terms of Use. The content relating to real estate for sale on this web site comes in part from the IDX program of the MetroList MLS Services. Listing content is copyright © 2017 MetroList MLS Services. All information provided is deemed reliable but is not guaranteed and should be independently verified. The information provided is for consumers. personal, non-commercial use and may not be used for any purpose other than to identify prospective properties for purchasing. Please contact Kaye Swain Real Estate directly for additional information pertaining to the status and availability of properties displayed on this website.

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.

*****************************************************************************

This blog may also contain other affiliate posts, ads, and links and we may receive compensation for posting those as well as for links that are clicked

Log in