Unveiling the Truth: The Resilient and Recovering Housing Market of Today

How is today's housing market unfolding?

Real estate markets often seem dismal, with media reporting dire stories. From bubbles bursting and foreclosure waves to plummeting home prices and collapsing home values - these headlines may give false hope about where things stand in terms of real estate investments.

The Truth

The housing market is not on the verge of collapsing. Between 1996-2005, U.S. inventory peaked at over 4 million homes before the financial crisis hit in 2008. Due to weak demand, job loss, and rising unemployment rates leading to forced sales, today it stands at 1.21 million homes or less than one third of what it was back then; with homeowners now having strong credit, secure jobs, low fixed payments, and significant equity; contributing factors which support an increasingly robust and resilient housing market.

Rising Inventory Is an Upward Trend

Riverside County's active listings have increased from 4,803 homes at the beginning of 2019 to 5,840 today - representing a 22% jump - signaling a recovery market. Nationally, inventory levels are at their highest since October 2020 - giving markets that have been experiencing limited supply more breathing room to expand and recover.

How Mortgage Rates Will Affect Housing

High mortgage rates have kept many homeowners from selling, as they enjoy low fixed-rate payments. As rates eventually come down, however, they will likely lead more homeowners to sell while also increasing buyer demand as lower rates make larger homes more accessible - causing demand rather than oversupply of homes to increase.

Concerns About Foreclosure Rising

Unemployment rates and fears of more foreclosures go hand-in-hand, even with their recent uptick to 3.9% - historically low unemployment levels. Thanks to stringent credit standards post-Great Recession thanks to Dodd-Frank Act regulations, housing markets have been protected against an upsurge in foreclosures - Riverside County boasts few foreclosures as a testament of market strength and resilience.

Ignore housing myths and negative narratives on social media; data shows otherwise: the housing market remains stable with rising inventory levels and strong demand. By understanding these facts more clearly, buyers and sellers alike can navigate the market with confidence and clarity.

If you're looking to invest in Corona real estate, Eastvale homes for sale, or properties in Riverside, contact Diana Renee Homes. With extensive knowledge of these markets, Diana can help you find the perfect investment that meets your needs and lifestyle. Reach out today to begin your investment journey in some of California's most sought-after locations.