Brevard County Housing Market Report: Are We Headed for Another Crash?

Is our housing market heading for another crash?

With all the talk about the constant shifts and changes in our housing market, there has been a lot of speculation we are headed for another housing crash. However, current data shows our housing market is nothing like it was before the crash in 2008 and it has to do with the following factors:

• Mortgage standards
• Foreclosures
• Supply of homes for sale

1. Mortgage standards

Today mortgage standards are much stricter. During the time before the market crash, it was much easier to get a loan. Banks lowered their lending standards which made it easy for just about anyone to qualify for a home loan. Unfortunately this practice lead to mass defaults, foreclosures, and falling prices. Today's homebuyers face higher standards from mortgage companies. 

2. Foreclosures

Another difference is the amount of homeowners who were facing foreclosure when the housing bubble burst. Since the housing crash, foreclosure activity has been low thanks to the more stringent lending regulations which means buyers are more qualified today and less likely to default on their loans. 

3. Supply of homes is more limited

During the crash, there were simply too many homes for sale on the market and many of these were foreclosures and short sales as a result of homeowners inability to pay their mortgage. This caused a drastic reduction in home prices. And while supply has increased in our housing market, there is still a shortage of inventory. 

Final Thoughts

Current data and market trends show we are not heading for a market crash and today's market is nothing like the crash in 2008.