Is the Market Going to Crash?

After the economic downturn of 2008-2011, many people have continued to wonder when the next crash will occur and how it will affect the housing market.  The previous crash was, in part, caused by careless lending practices.  Increased regulations and stricter rules have helped prevent that.  In addition, housing, especially in affordable price ranges (for our area I would consider this around $200,000 or less for a single family home), continues to be in high demand with no end in sight.  In fact, if the economy does experience a correction, I believe affordable housing will continue to thrive! 

The most vulnerable areas in real estate during an economic downturn would be high end single family residential (in our area, I would consider this $400,000 and up), commercial real estate, and condominiums or town homes.  In short, while there may be an economic downturn in our future, in my opinion it will likely not be as catastrophic as what we experienced in 2008, and will likely have much less impact on homes, especially single family homes, in “affordable” price ranges.

We love having real estate conversations!  If you have questions about your home or anything real estate related, please give us a call!