Will the Housing Market Crash ❓Summer 2024 Update🏡

Do you ever get tired of hearing about all those gloomy predictions for the future? Well, I’ve got some good news for you! This blog will dive into the latest headlines about “Will the Housing Market Crash this Summer in Metro Detroit? 🥴

Is the Housing Market Going to Crash this Spring 2024? | Team Tag It Sold

Why a Housing Market Crash Isn’t on the Horizon

Let’s delve into the current trends and data if you’re on the fence and wondering if we’ll see a housing market crash in Metro Detroit. In some cities, we’ve seen a slight downturn in home prices, and overall, the market is solid, making it the perfect time to buy or sell. And just to set the record straight from the get-go: don’t bank on a market crash. According to our real estate guides for winter, we’re looking at a continued upward trajectory in home values.

Remember the 2008 housing crash? Today’s real estate world is nothing like that. Here’s why.

The Mortgage Climate: Stricter Yet Safer

It was much easier to get a home loan during the lead-up to the 2008 Housing Market Crash. Lenders were not strict with their policies, causing a housing crisis. Back then, banks had different lending standards, making it easy for anyone to qualify for a home loan or refinance an existing one.

Fast forward to 2024, and the scenario has transformed. The pathway to a mortgage is now paved with stricter lending criteria, a move that has undoubtedly fortified the market’s foundation. This graph, courtesy of the Mortgage Bankers Association (MBA), illustrates the shift. A lower index number signals tighter lending practices—a positive indicator of a healthy, stable market.

MBA ~ Lending Standards Still Under Control 6-15-2024 | Team Tag It Sold

The peak in the graph shows that, back then, lending standards weren’t as strict as they are now. We’re working to prevent another housing crash by maintaining these stricter lending standards. This approach helps ensure that only qualified buyers get loans, contributing to a more stable and secure real estate market.

Analyzing Current Trends in the Housing Market

During the housing crisis, an oversupply of properties, including short sales and foreclosures, led to a significant decline in home prices. A notable shortage of listings describes the current housing market situation today in Metro Detroit. 

Macomb & Oakland County Housing Market Trends

Macomb County Home Prices and Trends by City

Oakland County Home Prices and Trends by City

Understanding the Shift: Home Equity and the Housing Market

Gone are the days when homeowners in Metro Detroit treated their houses like personal ATMs. Remember the early 2000s? That period led to the housing market crash, with many using their home’s equity for splurges—cars, boats, and lavish trips. When home values dipped and inventory surged, too many had loans that exceeded their home’s worth.

Fast forward to today, and we see a more cautious approach. Despite a significant recent rise in home values, homeowners resist the temptation to tap into their equity like before. People don’t borrow against their homes like before. 

Home Equity is at a All Time High | Team Tag It Sold

Distressed Properties (Foreclosures and Short Sales)

Distressed properties, like foreclosures and short sales, are another source of home inventory. During the housing crisis, there was a surge in foreclosures in Metro Detroit due to lenient lending standards that enabled many to secure home loans they couldn’t truly afford.

Nowadays, lending standards are much stricter, resulting in more qualified buyers and significantly fewer foreclosures. Based on ATTOM data, the graph below illustrates this shift since the housing market crash of 2008.

The graph shows that foreclosure numbers began to decline as lending standards tightened and buyers became more qualified. In 2020 and 2021, a foreclosure moratorium (highlighted in black) and the forbearance program helped prevent a repeat of the foreclosure surge seen during the market crash.

While you might see headlines about an increase in foreclosure volume, remember that this is compared to recent years when foreclosures were exceptionally low. Our local Foreclosure trends in Metro Detroit for Macomb and Oakland County search show only 25 as of today. 

Good News for Homeowners

In today’s housing market, things look great if you own a home. Homeowners have more money in their homes than ever. It’s like having a secret savings account that’s gotten bigger. Compared to the early 2000s, you’re standing on much firmer ground.

Why This Matters

Being in this good spot means homeowners have options if money gets tight, making it less likely they’ll have to sell their house in a rush. This is important because it keeps the market from getting flooded with too many homes for sale, which can make prices drop. But right now, that’s not happening.

The Bottom Line: No Big Price Drops Ahead

You might have heard some talk about a “Housing Market Crash this Summer in Metro Detroit” and are hoping for cheaper house prices. If you’re hoping for a significant drop in home prices, the current data suggests that’s unlikely to happen. The housing market today is much more stable and resilient than it was in the past. This is good news for both home buyers and sellers. It’s a sign of a healthy market, meaning that investing in a home remains a wise choice for your future. If you have any questions, let’s connect 🤓⤵️

Let’s Decode the Housing Market Together! Let’s Connect ⤵️

Wow 😮, there’s a lot to consider! Whether looking to buy a new home or considering selling in Metro Detroit, keeping up with the latest housing market trends is essential. After all, these numbers impact your decisions. Let’s simplify the process together. Schedule a Zoom call with me, and we’ll review the data. I’ll share my screen so you can see the market insights clearly and feel confident about your next steps. 

 

More Help Is 1️⃣ Click Away⤵️

If you find this information useful, like and share it with your friends and family. 🥰💯
 

 

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Pam Sawyer with Metro Detroit Home Experts | Team Tag It Sold

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Stay ahead in the real estate journey with insights that matter. Our newsletter is all about helping you save when buying and earn more when selling. Provide your email and text #, and we’ll deliver the knowledge you need. 👇👇👇
Real Estate Insider: News You Can Use | Team Tag It Sold
Real Estate Insider 🏡🎯
Stay ahead in the real estate journey with insights that matter. Our newsletter is all about helping you save when buying and earn more when selling. Provide your email and text #, and we’ll deliver the knowledge you need. 👇👇👇
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