While there have been some concerns that the current housing market is similar to 2008, economists and industry experts say that these comparisons aren't fair because today's economy is not as bad as it was before.
In 2008 the housing market crashed, and many people lost their homes to foreclosure or bankruptcy proceedings because of high mortgage rates that made it impossible for them pay off what they owed on time each month.
But now, home prices are lower than they were, mortgage rates are healthier, and there is more inventory on the market. These three factors alone mean that homebuyer expectations should be different now from when house dreams died during America's last recession.
The housing bubble burst years ago was massively chaotic, but this time around it will not end so dramatically, according to the experts – In 2008, many people lost their jobs overnight or had significant cuts, as financial institutions started shutting down.
Luckily, the mortgage lending standards are much tighter now than they were prior to the last crisis. This means that those approved for mortgages these days are far less likely to default on their loans whereas people who got mortgages back then could easily break free from any obligations by simply walking away from it all.
The number of people looking for homes still outweighs the supply of homes for sale. Many millennials are starting to consider homeownership, but experts don't believe there's a bubble or crash waiting for them.
This, of course, is great news for our housing market! If you've been nervous to buy, what is stopping you? We'd love to hear from you!