Comparing the 2008-2009 Market to Today’s Market
It seems that people fear a repeat of what happened to the market in 2008 and 2009.
The reality is this. There are some similarities between now and the pre-bubble market of 15 years ago. Prices are appreciating rapidly, however, there is one massive difference. The inventory of homes for sale right now is drastically different than 15 years ago.
Economists tell us that, in order for prices to crash, demand needs to diminish, supply needs to swell, or some combination of the two. Supply today is a fraction of what was 15 years ago.
Homes for sale today:
- Larimer County = 238
- Weld County = 226
Homes for sale 15 years ago:
- Larimer County = 2,998
- Weld County = 1,113
The reason why prices flattened and decreased slightly along the Front Range in 2009 is because the National economy had a melt down and there was glut of supply. We do not have anything similar to those same dynamics today. Most economists believe that the current pace of appreciation will not keep up, but inventory levels insulate from any kind of crash. There is hope as a promising increase in the inventory of homes has taken place in the last few days.
“The remainder of 2021 will see mortgage rates increase gradually due to the increase in economic spending. We anticipate mortgage rates on a 30-year fixed rate to get to 3.24% by summer,” said Jason Gelios, a top-producing realtor with Community Choice Realty in Southeast Michigan.”
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