{"id":680,"date":"2020-04-15T15:08:49","date_gmt":"2020-04-15T15:08:49","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=680"},"modified":"2020-04-15T15:08:49","modified_gmt":"2020-04-15T15:08:49","slug":"think-housing-crisis-think","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/think-housing-crisis-think\/","title":{"rendered":"Think This Is a Housing Crisis? Think Again."},"content":{"rendered":"
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Think This Is a Housing Crisis? Think Again.<\/p><\/div>\n

With all of the unanswered questions caused by COVID-19 and the economic slowdown we\u2019re experiencing across the country today, many are asking if the housing market is in trouble. For those who remember 2008, it\u2019s logical to ask that question.<\/p>\n

Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession \u2013 the recession that\u00a0started<\/strong>\u00a0with 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.<\/p>\n

Let\u2019s look at five things we know about today\u2019s housing market that were different in 2008.<\/p>\n

1. Appreciation<\/strong><\/h4>\n

When we look at appreciation in the visual below, there\u2019s a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leading up to the crash, we had much higher appreciation in this country than we see today. In fact, the\u00a0highest level<\/strong>\u00a0of appreciation most recently is below the\u00a0lowest level<\/strong>\u00a0we saw leading up to the crash. Prices have been rising lately, but not at the rate they were climbing back when we had runaway appreciation.<\/p>\n

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Annual Home Price Appreciation<\/p><\/div>\n

2. Mortgage Credit<\/strong><\/h4>\n

The\u00a0Mortgage Credit Availability Index<\/em>\u00a0is a monthly measure by the\u00a0Mortgage Bankers Association<\/em>\u00a0that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we\u2019re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way leading up to today.<\/p>\n

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Historic Data for the Mortgage Credit Availability Index<\/p><\/div>\n

3. Number of Homes for Sale<\/strong><\/h4>\n

One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don\u2019t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory, an\u00a0undersupply<\/strong>\u00a0of homes available for interested buyers.<\/p>\n

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Months Inventory of Homes for Sale<\/p><\/div>\n

4. Use of Home Equity<\/strong><\/h4>\n

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.<\/p>\n

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Total Home Equity Cashed Out by Refinance in Billions<\/p><\/div>\n

5. Home Equity Today<\/strong><\/h4>\n

Today, 53.8% of homes across the country have at least 50% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they\u2019re much less likely to walk away from their homes.<\/p>\n

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Americans are Sitting on Tremendous Equity<\/p><\/div>\n

Bottom Line<\/strong><\/h3>\n

The COVID-19 crisis is causing different challenges across the country than the ones we faced in 2008. Back then, we had a housing crisis; today, we face a health crisis. What we know now is that housing is in a much stronger position today than it was in 2008. It is no longer the center of the economic slowdown. Rather, it could be just what helps pull us out of the downturn.<\/p>\n

 <\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Housing Crisis? No, Health Crisis. Finish Reading Think This Is a Housing Crisis? Think Again.<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[38,10,18,157,52,49,134,42,40,12,24,48,68,13],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/680"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=680"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/680\/revisions"}],"predecessor-version":[{"id":687,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/680\/revisions\/687"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}