The Top 5 Reasons a Housing Market Crash Is Not a Given

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Real estate prices have never been higher, and there are no signs of them slowing down soon. While the stock market and other asset classes, such as precious metals, have collapsed, housing market prices keep defying gravity. Hence why many are asking the question: will the housing market crash?

Is the Bubble About to Burst?

As per a recent Redfin survey, 77% of homeowners think there is a bubble in their home area. Is this a sign the housing market will crash? Not necessarily. Fifteen years ago, permissive lending standards and rampant investor speculation fueled high housing prices. Today, the market is very different. In simple terms, demand is outstripping supply, pushing up prices and giving the market a bubble-like feel. Prices haven’t been this frothy in the U.S. home market since the mid-2000s.

Back then, the housing market went into a tailspin, with tragic results. The real estate bubble burst, starting the most significant economic depression since World War II. With that period a distant memory and the property market on a new high, many are wondering if we are due for a correction.

Indications of a Housing Market Crash?

According to Home Point Financial’s Phil Shoemaker, the one thing he keeps getting asked is, “Is this a bubble?”

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