This is Not a Bubble

The housing market is hot but leading economists say a crash is not imminent.

Info taken from Brian Buffini.

Why 2021 is Different

The causes of the last housing bubble crash can be summed up in three points. Low down payments, flexible mortgage rates, and an oversupply. 2021 is different because the current combination of high buyer demand and low inventory mean there is a low risk of over building.

-Existing home for sale in 2021 - 1.16 Million

-Existing homes for sale in 2007 - 4 Million

Down Payments are Up

More money down means more equity to start. Leading up to the market crash in 2008 down payments were low. In addition more buyers were gambling with adjustable mortgage rates compared to fixed rates. It's also much harder to qualify for a loan you can't afford. In March of 2008 there were 234,685 foreclosure filings compared to 2021 were there have only been 11,810 as of April.