Will the Market Crash?
With home prices reaching all-time record highs left and right, a common concern is if we are in a “bubble.” With a bubble comes a market crash. While this drastic market shift may feel concerning and reminiscent of years past, the truth is no market crash is upon us. If you have your eye on Thousand Oaks homes for sale you have likely noticed that just from May 2021 to May 2022 there was an increase in home sale prices of 14.8% and a total of roughly 45% increase in prices just since the onset of COVID19.
However, economists have been predicting more of a market cool off as opposed to a market crash. Home values have really become a victim of their own success. There are several reasons why a real estate crash is highly unlikely. The first reason is that home inventory is at an all-time low. Second, builders cannot meet demand and third the demographics of buyers have shifted. COVID caused a shift in the market we had not seen before that people who were unlikely buyers and sellers suddenly decided to relocate with the new work from home opportunities. Also, there is now a flood of millennials entering the market. Fourth, lending remains strict. In previous market crashes lenders gave away money too easily and borrowers were unable to pay back their debt. This is not the case in the current market as lenders have strict policies of who can qualify for a home loan. Finally, homeowners have so much equity in their home that a massive number of foreclosures is not eminent.
If you have been watching Thousand Oaks homes for sale and are confused about how this market shift affects you and your real estate goals we are here to help. We look forward to helping you achieve your real estate goals and navigate this confusing market.