Is a Housing Market Crash on the Horizon?

Do You Think the Housing Market’s About To Crash?

                                 Shared by Rancho Cucamonga real estate broker Li Li Hwang 

Today’s Inventory Keeps the Housing Market from Crashing

Mark Fleming, Chief Economist at First American, says:

“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”

Think about it. If there’s a shortage of something – like tickets to a popular concert – prices go up. That’s what’s been happening with homes. We still have a shortage of supply. Too many buyers and not enough homes push prices higher.

Check out the white line for 2025 in the graph below. Even though the number of homes for sale is climbing, data from Realtor.com shows we’re still well below normal levels (shown in gray):

That ongoing low supply is what’s stopping home prices from dropping at the national level. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“… if there’s a shortage, prices simply cannot crash.”

~ Above information provided by KCM ~ 

Bottom Line

When the supply of homes for sale is lower than the demand of home buyers, the housing market is not going to crash. Though the inventory is a little higher, it is still low. The price may not rise as high as before, it is likely to stay stable. Therefore, do as you have been planning for: to sell or buy.

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