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Dan Dennison, MBA

Big Block Realty
San Diego, CA
Real Estate Agent
858-255-0052
Contact Me
CalBRE# 01906674

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Housing Market: Another Gigantic Difference Between 2008 and 2018 | Simplifying The Market

Housing Market: Another Gigantic Difference Between 2008 and 2018

   First Time Home BuyersFor BuyersFor SellersHousing Market UpdatesMove-Up Buyers

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Some are attempting to compare the current housing market to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.

However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.

Housing Market: Another Gigantic Difference Between 2008 and 2018 | Simplifying The Market

A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.

Today is radically different!

There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up (which is a possibility).

However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.

Housing Market: Another Gigantic Difference Between 2008 and 2018 | Simplifying The Market

Bottom Line

We will not have a glut of inventory like we did back in 2008 and home values won’t come tumbling down. Instead, if demand weakens, we will return to a normal market (approximately a 6-month supply) with historic levels of appreciation (3.6% annually).



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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Dan Dennison Realtor/MBA and Keeping Current Matters, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Dan Dennison Realtor/MBA and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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Dan Dennison, MBA
Big Block Realty

2820 Camino del Rio S Ste. 314
San Diego, CA 92108
Phone: 858-255-0052
Email: Dan.Dennison@mac.com

Testimonials

Dan Dennison has been my agent throughout the entire process of the search for my first home.

Having witnessed many friends and family members go through this process throughout the years, I knew I needed a trustworthy and patient agent.

My very first search for a home was certainly an enjoyable and smooth process because of Dan. He is knowledgeable (with decades of experience in Real Estate across multiple states in the country), professional (has an MBA in addition to his experience in the field), friendly (has two friendly dogs as well!), and patient (took his time explaining and answering any questions I had).

From day one, Dan was honest, professional, and easy to work with. He takes great care in listening to the client and identifying their wishes in the home search. He carefully explains things in a logical and easy-to-understand manner for a first-time buyer like myself.

In addition, Dan has been an excellent resource and as well as a friend when it came to other important items related to the search, such as identifying and navigating through the lending process, learning about what an HOA covers, locating a trustworthy insurance company, home warranties, and discussions with the listing agents and sellers about questions.

Dan Dennison is an agent who will go above and beyond to provide the highest quality of service to you, holding the clients' interest at heart.
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