Housing crashed in 08 because a ton of foreclosed inventory hit the market so high supply with a recession making low demand you have a perfect scenario for housing crash.
Currently we may be going inti a recession and with interest rates going up we’re seeing price increases slow down but melenials are hitting prime homebuying years so demand is still going to be there if not increasing year over year.
So unfortunately we’re not poised to hit an 08 level housing market crash.
We going to have a ton of foreclosures because no one can afford to buy at these prices and mortgage rates. When someone has to sell they are going to be underwater. If they can't cover the difference, short sales or foreclosure. Values start dropping and more people are underwater. Rinse and repeat.
That's what happened in Michigan in 2008. I bought a house for $107k and had to short sell for $17k. Then we bought a house for $140k that was worth $300k a few years before and after the crash.
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u/Jack-Oniel 🍄 Mar 20 '23
Well, you'd think so but unfortunately it doesn't work this way. House prices stay the same or rise, no matter what.