Housing To Crash Soon!!!

So every time I turn the news on it talks about how housing is about to crash and you're going to lose all your equity. The sad thing is they're just saying all that to keep you watching because Doom and Gloom sells and unicorns and rainbows does not. Let's talk about what's really going on in the market.

What's really going on is we have the most Equity that we've ever had in homes in the United States. Just under 50% of the homes in the US are completely paid for. Meaning they can't be foreclosed on. Those who do have a mortgage most have the equity to sell their house and not have to short sale it if they needed to move. If you had equity in your house and all of a sudden had to move quickly would you walk away from it and hand it back to the bank or would you sell it and get your Equity out?

In a crash we need somewhere to fall when you look at the amount of houses on the market it's only a month of inventory here in Richmond. When you go back to our last big crash in 2008 we had over 10 months of inventory. I don't know about you but when there is more demand than there is Supply there's no place to crash to. It would take an astronomically large influx of houses coming on the market to get us out of having low Supply that we have now.

A lot of what caused our last major crash was loose lending practices. Right now it's harder to get a loan then it's ever been before because they don't want 2008 to happen all over again. You actually have to have a good credit score, good payment history, money in the bank, and consistent job history. If you don't have all these things most lenders are going to tell you no unlike 2008.

So I understand that the quick appreciation and then slow down has many people scared. But looking at the statistics we're not headed for crash. We are just coming off a very Hypermarket we're demand was through the roof and supply was minimal push prices up quickly. Like I always say I don't have a crystal ball however looking historically this is normal supply and demand.

What do you think?

[JamesMicLewis]

I don't know much about this stuff
I'm commenting so I can come back to this later.