Will Our Housing Market Crash?

When we look at the conditions that triggered the bubble in 2008, we are FAR from having a similar experience. Let’s compare….

2008 Housing Market Crash

Home loans were relatively easy to get. People without substantial financial backing could qualify for certain products, but they came with riskier conditions. So when the recession started in 2007, as homeowners lost their jobs (6.1% unemployment) and their savings dwindled, they were suddenly at high risk of foreclosing. Desperate to sell in already a strong buyer’s market, Colorado’s market became flooded with inventory. Denver alone peaked at 36,000 listings per month (population of 2.3 million)! By the end of 2008, Coloradans’ homes depreciated by a whopping 13%. 40,000 homes foreclosed that year.

2022 Housing Market Strengths

The mortgage loan industry has transformed over the last 14 years. If you own a home, qualifying was far more rigorous. And your loan product includes safeguards to minimize your chances of foreclosure. As our economy recovered from the 2008 crash, Colorado began to flourish. Now a hub for many industries and mega companies, we’ve faired far better through the pandemic than most states (unemployment was 3.4% in August). Almost every community has remained a strong seller’s market along the Front Range. At the end of September, Denver only had 7,700 listings available (a population of 2.9 million).

The significant demand from buyers has kept our home values appreciating. Colorado homeowners averaged a 10% increase year-over-year (Aug 2022 vs. Aug 2021). And for the first half of 2022, only 2,322 homes have foreclosed across our state.

People continue moving to (and within) Colorado. Our housing markets may be experiencing dips, but they remain strong. 

And in uncertain times, unexpected opportunities can become available. So talk with your RE/MAX Alliance agent about your real estate goals. If you have a solid financial standing, now could be the best time to sell, buy, upgrade, or invest (or if you should wait). That’s because we care about your priorities, unique needs and creating the best possible life for your family.

Sources: Megan Aller, First American Title, Colorado Association of Realtors, Denver Metro Association of Realtors, RealtyTrac.com, Attom.com, Colorado Division of Housing, Bureau of Labor Statistics