You might remember the housing crash in 2008, even if you didn't own a home. If you're worried there will be a repeat of what happened back then, there's good news – the housing market now differs from 2008.
One important reason is there need to be more homes for sale. That means there's an undersupply, not an oversupply like the last time. For the market to crash, there would have to be too many houses for sale, but the data doesn't show that.
Housing supply comes from three main sources:
- Homeowners deciding to sell their houses
- Newly built homes
- Distressed properties (foreclosures or short sales)
Here's a closer look at today's housing inventory to understand why this isn't like 2008.
