3 Reasons Why We’re Not Headed for a Housing Crash

Inventory of Homes for Sale Still Below Norm
Months’ Supply of Existing Homes

Even though the supply of existing (previously owned) homes is growing, it’s still low.

Builders Aren’t Overbuilding, They’re Catching Up
Single-Family Housing Units Completed, in Thousands

Builders aren’t overbuilding like in the lead-up to the crash – they’re just catching up after underbuilding for over a decade.

Foreclosure Filings Are Still Very Low
Quarterly Number of Consumers with New Foreclosure Filings, in Thousands

During the crash, foreclosures spiked since many people couldn’t repay their loans. But today, filings are still very low.

“We will not have a repeat of the 2008-2012 housing market crash. There are no risky subprime mortgages that could implode, nor the combination of a massive oversupply and overproduction of homes.”

Lawrence Yun
Chief Economist, NAR

Sources: NAR, Census, ATTOM, Bankrate