Think This Is a Housing Crisis? Think again.

5 Reasons why this market is far different than 2008!

With all of the unanswered questions caused by COVID-19 and the economic slowdown were experiencing across the country today, many are asking if the housing market is in trouble. For those who remember 2008, it’s logical to ask that question.

Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession — the recession that started with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that has caused a pause in much of the economy and a major shutdown of many parts of the country.

Let’s look at five things we know about today’s housing market that were different in 2008.

The chart below shows the difference in how people are accessing the equity in their homes today as compared to 2008. In 2008, consumers were harvesting equity from their homes (through cash- out refinances) and using it to finance their lifestyles. Today, consumers are treating the equity in their homes much more cautiously.

5. Home Equity Today

Today, 53.89% of home across the country have at least 5O% equity. In 2OO8, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now. They’re much less likely to walk away from their homes.