Housing Market: Not Your Daddy's 2008 Market
Have you heard others try to compare our current housing market to the one that led up to the "boom and bust" that we painstakingly experienced a decade ago? They look at price appreciation and conclude that we are on a similar path, speeding toward another housing crisis. Like Apples and Oranges However, there are several differences between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards and practices, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes nationally available for sale leading up to the 2008 crash. A normal healthy market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply nationally leading up to the crisis. When the banks were called out for their questionable lending practices and ceased them demand tanked and there was a glut of inven