Housing Market 2018 VS 2008
Many folks are wondering if there is a comparison between the current real estate housing market and the market just prior to the "boom and bust" ten years ago. Looking at just price appreciation alone, many fear that we are on a similar path, advancing quickly toward another market downturn.
However, looking deeper into the data, there is a defining difference between the two market periods. During the last decade, the demand for real estate was artificially created by very relaxed lending standards combined with a large amount of inventory added to the market to meet the demand. Below is a chart illustrating the amount of inventory of homes for sale just prior to the market crash in 2008.
During a normal real…