ReCasa Financial Blog

In 2008, the United States experienced a housing market crash. This was the biggest change in the housing market since the Great Depression.  With the current changes we are seeing in the real estate market today, some people are worried that we might be seeing another housing market crash of 2008. However, real estate experts believe that the current housing market is nowhere near the housing market of 2008.

Currently, the number of real estate sales continues to decrease month to month, but real estate experts believe this decline will slow.

Experts say that the 2008 housing crash was due to homeowners not being able to pay their mortgage as interest rates were too high. Many blame the adjustable rate mortgages (ARM). Today, many homeowners have been able to obtain low fixed interest rates on their mortgages. Today, 8% of mortgages are ARM, while in 2007 36% were ARM. Laws and regulations were put in place after the Great Recession to help prevent another similar event.     



We all wish we could correctly predict the future, but there is no way of determining the future in real estate. We can look at the past and learn on how to handle the future. What did you learn from the 2008 housing crash that will help your real estate investment business?