The excerpt below is from a Forbes article by Q.ai titled "Housing Prices Are Dropping — Yes, A House Is Still A Good Investment." Pay close attention to the last line discussing today’s real estate market, "Finally, a crash only happens when there are more Sellers than Buyers." 

"According to Consumer Affairs, 63% of people are hoping for a housing crash so they can afford to buy a home. Unfortunately, no signs point to this happening. Most experts agree that a crash like the one in 2008 is not on the table. 

There are a handful of reasons for this. First, the consumer has a stronger balance sheet today than in 2008. Also, many of the mortgages underwritten in 2008 were of low quality, and not many checks and balances were in place to prevent unqualified borrowers from taking on subprime mortgages. Today, the industry is very different, and there are more restrictions on who qualifies for a mortgage.

Finally, a crash only happens when there are more sellers than buyers. When there are few buyers, sellers have to lower the price to entice someone to buy. But if 63% of people are waiting on the sidelines, a full-scale crash is unlikely. A large pool of people are ready to buy, so any drop in asking prices will result in a flood of buyers, which will actually stabilize prices." 

The graph below shows inventory levels in Lamorinda are very similar to last year. If you are qualified, we recommend taking action now versus waiting to buy or sell. We can't control the market, and no one knows when prices will start to rise again. 

It's not too late to get started with the buying or selling process. Call us today. 

Dana & Team