OC HOUSING REPORT: No Detectable Plunge
HOUSING DATA DEMONSTRATES THAT A SIGNIFICANT DROP IN HOME VALUES ARE NOT ON THE HORIZON DESPITE THE CURRENT MARKET SLOWDOWN.
A LOW HISTORICAL SUPPLY
With a limited inventory and over a decade of tight lending standards, housing values will not plunge as they did during the Great Recession.
A surprising 44% of Americans thought the housing market would crash and values would plunge, according to a LendingTree survey conducted at the end of last year. A shocking 52% of millennials believed in a 2024 crash. The same study was conducted at the end of 2022, and 41% of Americans thought housing values would nosedive in 2023. The market did not collapse in either 2023 or 2024. How could so many convinced Americans get it wrong?
The Great Recession was a painful downturn for housing. So many homeowners were burned as values cratered and equity evaporated seemingly overnight. Everyone was affected by it personally or they knew someone who was painfully impacted and left with nothing. It was the most devastating period for housing since the Great Depression. As a result, the immediate knee-jerk response to any slowdown in housing is that values will tumble once again like they did during the Great Recession.
In 2018, when rates climbed from 4% to 5%, many believed that housing values would plunge. At the beginning of COVID, when the economy came to a screeching halt and many homeowners entered forbearance, the market was expected to tilt heavily in the buyer’s favor. And, when the Federal Reserve raised the Federal Funds Rate eleven times between March 2022 and July 2023, the housing bubble was supposed to pop. Yet, that did not occur.
CONTACT KASIA FOR MORE INFO
Kasia Andrzejuk
(630) 569-5299
kasia@kasia99realtor.com
DRE 02124221
