Mortgage rates for a while were quite low, while home prices in Connecticut were reaching new heights. Demand and price gains have finally started to cool off in the wake of this record-setting streak, but this has put some on their guard for a housing market crash. Find out what the experts have to say to learn if these fears are founded or not.
Analysts say the fears may be exaggerated
Many are leery of any upsets in the housing market after the Great Recession, and some analysts agree that there is good cause for alarm. The bursting of that real estate bubble around 2008 generated a global economic downturn rivaled only by the Great Depression.
The good news is prices aren’t expected to drop to the level that they did when the Great Recession when national economies on a global scale tanked between 2007 and 2009. There may be some downturn that the housing market is currently in store for, but most experts don’t think we have another Great Recession on our hands.
What creates a market crash?
These concerns of a looming housing market crash shared by experts and laypeople alike come in the wake of a highly frothy market which is when the price of assets has started to go past its intrinsic value. There was also a proliferation of bidding wars and tighter inventories.
Mortgage rates are through the roof, and it seems to experts as if a recession may be imminent, so the question that many people have on their minds is whether or not the U.S. housing market has gotten hot enough to crash.
Some experts have predicted that it will be much milder than some people fear. The consensus amongst these analysts is that it won’t be another great recession, but that means some may still feel the impacts.