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3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008

Caitlyn Peck

Caitlyn Peck is Nationally recognized as the #1 Realtor in Fresno on Social Media.  eXp Realty Inc...

Caitlyn Peck is Nationally recognized as the #1 Realtor in Fresno on Social Media.  eXp Realty Inc...

Oct 27 5 minutes read


With all the headlines and talk in the media about the shift in the housing market, you might be thinking this is a housing bubble. It’s only natural for those thoughts to creep in that make you think it could be a repeat of what took place in 2008. But the good news is, there are concrete data to show why this is nothing like the last time.


There’s Still a Shortage of Homes on the Market Today, Not a Surplus

For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Supply has increased since the start of this year, but there’s still a shortage of inventory available overall, primarily due to almost 15 years of underbuilding homes.


The graph below uses data from the National Association of Realtors (NAR) to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 3.2-months supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time, even though some overheated markets may experience slight declines.


fresno inventory.

Mortgage Standards Were Much More Relaxed Back Then

During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home.


Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies.


The graph below uses Mortgage Credit Availability Index (MCAI) data from the Mortgage Bankers Association (MBA) to help tell this story. In that index, the higher the number, the easier it is to get a mortgage. The lower the number, the harder it is. In the latest report, the index fell by 5.4%, indicating standards are tightening.

 3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008.

This graph also shows just how different things are today compared to the spike in credit availability leading up to the crash. Tighter lending standards over the past 14 years have helped prevent a scenario that would lead to a wave of foreclosures like the last time.


The Foreclosure Volume Is Nothing Like It Was During the Crash

Another difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans. 

The graph below uses data from ATTOM Data Solutions to help paint the picture of how different things are this time:

foreclosure fresno ca 2023:

Not to mention, homeowners today have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Today, many homeowners are equity rich. That equity comes, in large part, from the way home prices have appreciated over time. 


According to CoreLogic:

“The total average equity per borrower has now reached almost $300,000, the highest in the data series.”

Rick Sharga, Executive VP of Market Intelligence at ATTOM Data, explains the impact this has:

“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure. . . . We believe that this may be an indication that borrowers are leveraging their equity and selling their homes rather than risking the loss of their equity in a foreclosure auction.”

 This goes to show homeowners are in a completely different position this time. For those facing challenges today, many have the option to use their equity to sell their house and avoid the foreclosure process.


Bottom Line

If you’re concerned we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your fears. Concrete data and expert insights clearly show why this is nothing like the last time.

If you are buying or selling, you MUST talk to Caitlyn.

If you are buying or selling, you MUST talk to Caitlyn. Even if you are just wanting more information on how the market stands, or where to start, she is your go-to gal. My husband and I started looking to buy our first home in March 2020. We told Caitlyn what we wanted in a home and where we wanted it and she set up an online portal that showed us the homes that were for sale in the areas we were interested in. A house came up for sale, we went to look at it the next day, and had our offer in by the end of the day. Caitlyn knows her stuff, and her work ethic along with her connections, help her get the job done even smoother. She is open for any questions and always explains things so you know what you are getting yourself into. We truly believe our first home buying experience would not have been this enjoyable without Caitlyn.

Caitlyn is very energetic and knowledgeable. I highly recommend Caitlyn if you are selling or purchasing a home.

After our offer on a home in Visalia was accepted we contacted Caitlyn and she immediately prepared our Clovis home to be listed by taking fantastic pictures that showcased it nicely and then she immediately listed it which resulted in multiple offers. Our house closed in 40 days. Caitlyn is very energetic and knowledgeable. I highly recommend Caitlyn if you are selling or purchasing a home.

When my husband & I first considered selling our home we met with Caitlyn & she answered all our questions making us feel very comfortable with the process.

When my husband & I first considered selling our home we met with Caitlyn & she answered all our questions making us feel very comfortable with the process. It was obvious right off the bat that not only was she super knowledgeable about the market, but that she cared about what we wanted. After a  few months of preparation, we were ready to list & Caitlyn went right to work! She is so flexible & would bend over backward to make sure we were 100% comfortable with the process. Caitlyn is reachable when you need her and is equally encouraging when that is needed too! She and Justin made the process so smooth! Not only did they hold our hands through the entire selling process, but they worked diligently to find us our new dream home. Working with Caitlyn & Justin was the greatest experience. I would recommend this knowledgeable, professional real estate team to anyone who is looking to buy or sell their home. Thank you again for all the hard work you’ve done!

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