Last week CNBC published a story that sought to answer why searches for “housing crash” had gone up 2,450% in the past month. This search term is something that has brought readers to HousingWire for years, and it’s always surprising, but maybe it shouldn’t be. After all, housing demand is very high and inventory is really low, so we’re seeing bidding wars, appraisal gaps and really steep home prices all over the country.
If you aren’t in the business day to day, all those factors could seem scary. Heck, even if you are in the business you could wonder what it all means.
But Lead Analyst Logan Mohtashami says not to worry, the housing market is not going to crash. And — as usual — he has loads of charts and data to back up his opinion.
“This story is more about low inventory than speculative demand,” Mohtashami writes. “Inventory is abnormally low when housing demographics are solid; we have low mortgage rates and some make-up demand for opportunities lost in 2020 during the COVID-19 shutdowns. However, we don’t have anything that looks like the speculative credit bubble we saw from the years 2002-2005.”
Read Mohtashami’s article here and share with clients, friends and family so they can stop losing sleep googling housing crash and go back to scrolling baby goats and this beaver who is being rehabbed in a person’s house.
Sarah Wheeler HW - EIC