Why don't home prices crash?

Even with lighter buyer demand and stretched affordability, national home prices have stayed remarkably stable. The biggest difference between today and 2008 is the type of boom we came out of. The 2008 cycle was fueled by credit and bad debt. This cycle was fueled by equity, strong homeowner balance sheets, and much tighter lending standards. That matters because most sellers are not being forced to sell. If they do not get the price they want, many can simply wait. Nationally, the median list price is about $449,000, roughly 2% below last year, and prices have stayed in the same broad range for nearly four years. But there are signs of softer demand. Inventory is inching higher, price reductions are rising, and pending sales are now running slightly below last year. The takeaway: this is not a crash signal, but it is a strategy signal. Prices remain sticky, buyers are selective, and sellers need to price ahead of the market instead of chasing it. About Mike Simonsen: Mike Simonsen is the Chief Economist at Compass International Holdings and founder of Altos Research. He is known for his real-time housing market analysis, tracking inventory, pricing, mortgage rates, and buyer demand weeks before traditional housing reports are released. Subscribe for weekly housing market updates and real-time housing data insights. This post is for informational purposes only. It is not intended as financial, legal, or real estate advice. Any market forecasts or predictions discussed are speculative and are subject to change. Actual results may differ. You should seek your own professional advice before making decisions. Christie's International Real Estate disclaims any liability for reliance on this content. #HousingMarket #RealEstate #HousingMarketUpdate #RealEstateMarket #HousingTrends #HomePrices #Inventory#MortgageRates #HousingData #marketupdate #mikesimonsen