We all remember what happened in 2008, and unfortunately for many, the words “recession” and “housing bubble” immediately bring back memories of the crash.

However, there are big differences between today’s market and the ones leading up to the crash.

Here are the reasons today is nothing like the last time.

Before the Great Recession, the housing market had:

• Loose lending standards
• An oversupply of homes
• Overtapped equity

Today’s market looks the opposite with:

• Stricter lending practices
• An undersupply of homes
• More equity

In fact, in four out of the last six recessions home prices still appreciated, and experts project the same for this year’s forecast.

While we can never truly foresee what’s going to happen, we can keep up-to-date on the latest insights, especially in a shifting market.

And the truth is, with the current unpredictability of mortgage rates and experts predicting continued home price appreciation, buying a home sooner than later may be the better financial decision.

As the graph below shows, even at a more typical pace of appreciation, buyers still stand to make significant equity gains as their home grows in value.

Today, data shows buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your  homebuying plans.

• Moderating demand is slowing the pace of home sales
• Housing supply is finally able to grow which means more options to choose from
• Bidding wars have eased in recent months

This is great news if you have put off buying a home in the last two years because the market was too hot for them to handle.

As there’s more and more talk about the real estate market cooling off from the peak frenzy it saw during the pandemic, you wondering about about what that means for sellers.

The good news is: it’s still a seller’s market. Here’s why:

• Even though inventory is growing, there’s still a shortage of homes to meet buyer demand
• Conditions are still in the seller’s favor
• While buyer demand is softening due to higher mortgage rates, homes that are priced right are still selling fast.

When it comes to really explaining this to your clients, this quote says it all.

“Overall, the best summary is that we’ll move from a gangbuster sellers’ market to a modest sellers’ market,” said Ed Pinto, Director of the American Enterprise Institute’s Housing Center

While the real estate market continues to shift, there is still a lot of speculation about what the future holds. Contact Mo Hadid with Quest Real Estate for what’s happening in the Sacramento housing market and what that means for your homeownership goals.