Housing Crisis? Nah.

With our currently vulnerable economy, many are worried that the housing market could be in trouble just like during the last great recession. And that's a totally reasonable concern, right? Wellll, not really because here’s some relieving news you guys—this is NOT like the crash in 2008. And here's why: 

• Housing appreciation in 2008 was wildly inflated which is what eventually led to a monumental fall. Yes, home prices have appreciated in the last 6 years, but definitely not at the rate they were climbing right before the last recession.
• Mortgage lending standards are much tighter now. Unlike the old days when anyone with at least a mildly beating heart could get a loan, those who are buying now can actually afford it. 
• And housing supply? In 2008, there was an OVERSUPPLY of homes. So many homes. All the homes. But those days are long gone. Today, we’re working with a very limited supply of inventory, not nearly enough homes on the market for everyone who wants to buy them. In the East Bay, we have about one month supply of homes available. For context, 3-6 months of inventory is typical for a neutral market, and we're still a loong way off from that. 
• Home equity is being used much more cautiously, even though most homeowners are sitting on much more equity now than ever before. Back then, people were using cash-out refinances to fund their lifestyles (think vacations, cars, boats, all the unnecessary things to give the illusion of an influencer lifestyle). These days, not so much. 

So yes, it’s a scary and uncertain time right now. But that’s because we’re in the middle of a global health crisis, not a housing crisis. Which is kinda sorta comforting....right?