Introduction

What is a housing market crash? It’s a rapid decline in the nominal price of housing and a significant decrease in housing activity. Over the past decade, the housing market has experienced quite a roller coaster ride. Home prices have skyrocketed, then crashed, then risen again.

That cycle is still ongoing, but there are signs that this latest boom may differ from previous ones. Housing sales and prices are up overall, but they aren’t rising as quickly as they did during the last boom.

There are also fewer foreclosures than during the last crash—and even fewer people going into foreclosure now than before 2008 started! So does this mean we’re heading for another crash? Maybe not just yet…

Housing prices and sales are down, but the market isn’t crashing again.

The housing market is still recovering from the last crash. It’s not yet at the point where people are buying homes because they see them as an investment or flipping them for a quick profit.

But even if you don’t have a crystal ball that can predict whether your home will lose value in the next few years, there are some ways to know if you might be better off selling now instead of waiting for prices to go up again:

• If you are underwater on your mortgage (meaning that you owe more than your home is worth), it makes sense to sell now before interest rates go up further and make it harder for you to sell later down the road.
• If there is so much competition among buyers that sellers only get lowball offers on their homes—or no offers at all—then maybe it’s time to look at other options like renting out or listing with another agent who knows how to handle these situations better than others do right now (this option may take longer but could save thousands).

Or consider keeping it until things improve rather than trying something else quickly without considering what changes might occur by doing so first.

Home values aren’t falling dramatically.

Home values are falling slowly.

The housing market is still recovering from the 2008 crash, and it’s less intense than before. That means home values aren’t going to be higher than they were then, but they’re also not going to fall more than they did during the crash.

The record-high number of foreclosures in 2008 is unlikely to be repeated.

The record-high number of foreclosures in 2008 is unlikely to be repeated. While the number of foreclosure filings and completed foreclosures are higher than before the recession, they have declined for several years. They are expected to continue falling through at least 2020.

It takes longer for borrowers to go into foreclosure than in 2008.

The housing market crash was a significant event that had widespread effects. But it is not the only time the housing market has declined. The Great Depression saw a severe drop in home sales, followed by an increase in foreclosures and mortgage delinquencies as people struggled to make home payments.

People struggling financially went into foreclosure, which meant they lost their homes—and so did lenders who held mortgages on those properties.

Of course, things aren’t quite as dire now: no large-scale foreclosures are happening across America because of this current downturn (so far). But there are signs that we may see another one in the next few years if we continue to see job losses and slow economic growth at home—not just here in America but also abroad, where many U.S.-based companies have operations that contribute to our GDP (gross domestic product).

Delinquencies no longer matter as much as they did in 2008.

One of the main reasons that the housing market crashed in 2008 was because of delinquencies. In other words, people could not pay their mortgages and had to foreclose on their homes.

In the past decade, lenders have changed their policies and now expect you to be able to pay for your home even if you lose your job, fail to work for a few months or even years, and can’t make any money at all. This is why delinquencies no longer matter as much as they did in 2008.

ARM loans aren’t a problem anymore.

One of the most common misconceptions about ARM loans is that they are a problem. They’re not. These days, ARMs are far less risky than they were in 2006 and 2007, thanks to new regulations on the mortgage industry.

In an adjustable-rate mortgage (ARM), the interest rate can be adjusted periodically based on various factors—usually 1 year after closing and every 5 years after that (though some adjust monthly). So while your initial rate may be lower than that of a fixed-rate loan, it will increase as you pay down your debt.

The good news is that most ARMs have an adjustment cap or ceiling so that your interest rates can’t go higher than certain pre-determined levels; otherwise, it would be impossible for borrowers to predict their future costs when considering whether or not to buy a house with one!

Home prices are rising on average nationwide.

The housing market is a complicated beast to control, and it’s impossible to predict what will happen next. But there are some things you can expect:

• Home prices will keep rising in some regions and cities.
• The housing market will continue to be volatile for the foreseeable future.
• If you’re looking to buy a home, it may take longer than you’d expect or want it to take (mainly if you’re using an FHA loan).

The housing market’s still a ways away from the next crash.

While the housing market still has room to grow, and there are signs of a potential bubble, it’s not yet at the point where it would cause a crash.

Looking back, we can see that many factors caused the previous crash:

• The economy was in a recession, and falling prices weren’t enough to support banks that had invested money in risky mortgages.
• People who bought homes during this time couldn’t afford their monthly payments anymore and started defaulting on loans. This caused even more problems for homebuyers because banks started foreclosing on their properties (purchasing them from homeowners who couldn’t afford their mortgages).

The housing market isn’t crashing, but that doesn’t mean it’s thriving either.

Let’s get straight: The housing market is not a bubble. While it has been rebounding since the last crash, there are signs that this growth is slowing down and may even end. But while it may seem like we’re on the precipice of another recession, that’s not what’s happening here either.

The truth is that many factors come into play when determining how much house you can afford and where you’ll want to live—and in today’s economy, many people are struggling to afford rent or their monthly mortgage payments.

If you’re looking for real estate advice for homeowners or renters looking for help finding affordable housing options near them, consider reaching out to me!

Conclusion

The housing market isn’t crashing, but it’s also not thriving. Home values have risen above their pre-recession levels, but they’ve also fallen more than they should have in recent years.

And while the number of foreclosures is at record-low levels and delinquency rates are down across the nation, there are still some troubling signs for potential buyers—particularly first-time homebuyers in expensive markets like San Francisco and New York City.