Weekly Special | August 24, 2020

Housing Crash Potential: How Real Is It?

The headline news for real estate over the past few months is how the market is poised for another crash like we saw in 2006.

But this is not the 2006 market.

Demand today is strong, but it is nothing like the artificial demand that market experienced back in 2003 through 2006.

Home sales in Tallahassee (above)

and home sales in the US (right) are each graphed, with yellow band that shows how today’s home sales compare with the past. The red star identifies the starting point of the housing market collapse.

Remember, so many people were speculating and buying homes as investments in 2006, but today we’re not seeing that. We are seeing true demand. A growing population buying an “appropriate” amount of homes.

Right now, the supply of homes is low, as opposed to 2006 where supply was at an all-time high.

Conditions today are nothing like what Tallahassee or the US experienced in 2006.

The original one-page Weekly Special PDF is still available.