Why exactly do people think there will be a 2008 like crash? Inventory is a fraction of what it was then and building costs are up and there are many buyers. People with very low interest rates aren’t going to run to throw that home on the market unnecessarily and better lending practices and existing equity make a wave of foreclosures near impossible. Even COVID forbearance users can make things work with current equity. The inventory shortage will not be fixed anytime soon. Everyone says the evil cash buyers exists and have stopped them from getting their homes these last few years, so will they stop buying now as well? Will people forego their dream home even though they can refinance later because they are timing the market? It just seems the term crash and a reduction in historically high appreciation numbers are being conflated.
Are there actual indicators that insinuate a crash and that also make the relationship between supply and demand irrelevant?
Edit: As a commenttor said, inflation is also quickly eroding away the buying power of large down payments sitting in banks accounts right now as people wait to time the market. And for the down payments sitting in stock, if you’re timing of the market is waiting for a crash, well I have news for you.
