Four Reasons Why the Housing Market Won't Crash

Four Reasons Why the Housing Market Won't Crash:

1. The Inventory of Homes for Sale Remains Below Normal Levels:
   Although the supply of existing homes (i.e., second-hand homes) is increasing, it is still at a low level. The average supply from 1993 to 2023 was 5.3 months, but the current supply is below this average, indicating that the housing market is not experiencing an oversupply.
2. Builders Have Not Overbuilt; They're Just Catching Up:
   The number of completed single-family homes shows that builders have not overbuilt like they did before the 2008 crisis. They are merely catching up on the shortage of construction from the past decade.
3. Foreclosures Remain Very Low:
   The quarterly number of new foreclosures is still very low. Compared to the surge during the 2008 crisis, the current numbers indicate that there is no large wave of foreclosures on the horizon.

Homeowners Prefer to Keep Their Low-Interest Loans and Opt for Remote Work:Many homeowners have low-interest long-term loans, and selling their homes would lead to 2-3 times higher monthly payments, making it difficult to afford a similarly priced home. Therefore, they are more inclined to keep their current loans and jobs or seek remote work opportunities, rather than selling their homes.