Busting Myths: Why Home Prices Aren't Crashing Soon

By John Wesley Walker II

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Are home prices going to crash? Certainly, that appears to be the narrative going around in the media. The truth of the matter is that we aren’t destined for a crash any time soon. There are a few reasons why:

1. Lack of inventory. Even though we have seen a jump in interest rates, most markets across the country are experiencing a severe lack of inventory.

2. Lack of homebuilders. Nationwide, there has been a consistent shortage of homebuilders ever since the crash of 2008, when so many went out of business.

3. Healthy mortgage industry. A key reason for the last real estate crash was the mortgage industry, where so many mortgages were written that were faulty or otherwise unwise. These days, buyers have to be strongly qualified in order to get a mortgage, meaning that the likelihood of a crash is low.

So there you have it: three reasons why the housing market is not due for an imminent crash. That means if you were waiting for a crash in order to buy, it’s time to get off the fence. For any questions about the real estate market, please feel free to reach out by phone or email. I am always happy to serve as your resource for all of your real estate needs.