6 key things that could c?ause the real estate market to tank, and why these things aren't happening now

It seems as though the real estate catastrophe of 2008 has traumatized folks so badly, people are just waiting for it coming around the corner. Sure as the fall season is coming, the dreaded real estate tank has got to be headed our way.

In order for the housing market to really crash, a large percentage of the population would have to all sell their homes something like 40 to 50% off their current value

Why in the world would people do that? What might cause this occurrence?

• Reason one would be if there were wide spread job loss.We got a July job report back this summer showing unemployment at 3.5%. This is historically low. You can't shake a stick at most businesses without seeing a help wanted sign. Places can't hire fast enough to fill the demand. Long and short of it; we are not experiencing job loss.
• Reason two could be inventory flooding the market. We are currently experiencing historically low inventory, so this aint happening’.
• Reason number three could be people being too far leveraged. Home owners these days are holding lots of equity and paying very affordable mortgages with interest rates around 3.5 to 4%.
• Reason number four is recession. Historically speaking we have experienced a number of recessions the large majority of which have not affected the housing market what so ever. The really bad one was that doozy in 2008.
• Reason five is a familiar one, pandemic or some such national emergency. We never could have guessed what kinds of positive effects Covid and how it played out, ended up having on the housing market. As we are seeing these days, sure didn’t cause this aforementioned crash now did it?
• Reason six is a total economic collapse, yikes. For this to occur, there would have to be simultaneous international economic fall outs. Home values would have to drop 50% or more.

All of these scenarios make a homeowner long for a stiff drink. Merely entertaining the possibility, is stressful. The take away though is meant to be positive. Because yes, any of these things is always a lurking possibility, investment involves an element of risk. The housing market is in good shape right now, and there is no reason to hold off or stand back and wait to make whatever housing move you desire. There's no bigger a bummer, than looking back months down the road, and wishing you had made moves back then. Several months bring largely different tides to the real estate world, so what better time to take action than now.

Launching today The Monday Team is committing to take on 100 listings in 100 days! Buyers are in need of new inventory and we want to provide that, so please send us any and all of your buddies and cousins looking to list their property! Point them our direction, please and thank you.