Is a housing crash likely? Read on…

In 2007, many homeowners were upside down, owing more than their homes were worth. Banks were in control of the housing market as there was a wave of foreclosures and short sales that lasted years because of lower lending standards.

Today, the delinquency rate is at its lowest level since tracking, much lower than the average from 2000 to 2005.

Looking at the housing market now versus then side by side it is easy to understand why the two time periods

are different. Since the Great Recession, the finances of homebuyers have been stronger, with higher credit scores and downpayments.

Today’s inventory:

The inventory right now in Los Angeles County is 25% less than the 3-year average of 12,885 between 2017 and 2019, when things were normal prior to COVID.

This is why we are highly unlikely to see a housing market crash despite an economic recession.

Please feel free to reach out if you have any questions about how to navigate the market this summer! 💁🏾‍♀️