Real Estate Blog - Market Crash

Is a Housing Crash Coming? Here’s Why Brookings, SD Homeowners Shouldn’t Worry

Posted by Shane Andersen on October 28th, 2024

Lately, it seems everyone is talking about the economy and whispers of a possible recession are spreading fast. But here’s the good news for homeowners in Brookings, South Dakota, and nearby areas: there’s no reason to panic. While we’re certainly facing some economic uncertainty, the current state of the housing market is far stronger and more stable than it was during the 2008 crash. Here’s a closer look at why we’re not headed for a repeat—and how Shane Andersen and the Brookings Home Team can help you navigate today’s housing landscape.

1. Demand for Homes Is Outpacing Supply

One of the biggest factors behind the housing crash in 2008 was an oversupply of homes. Back then, the market was flooded with properties, and there simply weren’t…

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Here’s Why the Housing Market Isn’t Going To Crash

Posted by Shane Andersen on April 13th, 2023

Here’s Why the Housing Market Isn’t Going To Crash 

Some Highlights

• Today’s housing market is different than it was in 2008.
• Lending standards have tightened, foreclosures have declined, home inventory is much lower, and homeowners have far more equity.
• If you’re concerned about a crash, let’s connect to discuss why this isn’t like last time.

THINKING OF SELLING AND/OR MOVING TO BROOKINGS, VOLGA, OR ANY SURROUNDING AREAS? GOT QUESTIONS? I’M HERE TO HELP! VISIT BROOKINGSHOMETEAM.COM FOR MORE DETAILS!

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Why Today’s Housing Market Isn’t Headed for a Crash

Posted by Shane Andersen on March 8th, 2023

67% of Americans say a housing market crash is imminent in the next three years. With all the talk in the media lately about shifts in the housing market, it makes sense why so many people feel this way. But there’s good news. Current data shows today’s market is nothing like it was before the housing crash in 2008.

Back Then, Mortgage Standards Were Less Strict

During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance an existing one.

As a result, lending institutions took on much greater risk in both the person and the mortgage products offered.…

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Why Home Loans Today Aren’t What They Were in the Past

Posted by Shane Andersen on June 23rd, 2022

In today’s housing market, many are beginning to wonder if we’re returning to the riskier lending habits and borrowing options that led to the housing crash 15 years ago. Let’s ease those concerns.

Several times a year, the Mortgage Bankers Association (MBA) releases an index titled the Mortgage Credit Availability Index (MCAI). According to their website:

“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is . . . a summary measure which indicates the availability of mortgage credit at a point in time.”

Basically, the index determines how easy it is to get a mortgage. The higher the index, the more available mortgage credit becomes. Here’s a graph of the MCAI dating…

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