• Sign Up
  • Log In
Pamela Briggs
(909) 631-0006pamela@briggsteamrealty.com
  • Sell
  • Buy
  • Sell & Buy
  • Blog
  • Schedule a Call
  • (909) 631-0006
  • pamela@briggsteamrealty.com
    Copy Email
  • The Briggs Team
    1241 Grand Ave. STE B
    Diamond Bar, CA 91765
    (909) 631 0006
    pamela@briggsteamrealty.com

About

  • Home
  • Contact

Properties

  • Search Properties
  • Browse Areas
Pamela Briggs - Footer Logo
    • Privacy
    • Terms
    • DMCA
    • Accessibility
    • Fair Housing
    © 2025 Coldwell Banker Tri-Counties Realty. All rights reserved.
    Website built by CloseHack.
    California Regional Multiple Listing Service

    The multiple listing data appearing on this website, or contained in reports produced therefrom, is owned and copyrighted by California Regional Multiple Listing Service, Inc. ("CRMLS") and is protected by all applicable copyright laws. Information provided is for viewer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties the viewer may be interested in purchasing. All listing data, including but not limited to square footage and lot size is believed to be accurate, but the listing Agent, listing Broker and CRMLS and its affiliates do not warrant or guarantee such accuracy. The viewer should independently verify the listed data prior to making any decisions based on such information by personal inspection and/or contacting a real estate professional.

    Based on information from California Regional Multiple Listing Service, Inc. as of the most recent time synced and /or other sources. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information

    Five Reasons We Are Not Headed for Another Housing Crash

    Published 03/17/2020 | Posted by Pamela Briggs

    As the country continues to feel the impact of the Coronavirus (COVID-19) outbreak and volatility in the stock market, it’s caused many to question if this could lead to another housing crash like in 2008?

    The answer is a resounding NO.

    Here are five reasons to explain the dramatic differences.

    1. Mortgage standards are nothing like they were back then.

    During the housing bubble, it was difficult NOT to get a mortgage. Today, it is tough to qualify. Getting a mortgage today is even more difficult than it was before the bubble.

    2. Prices are not soaring out of control.

    Though price appreciation has been quite strong recently, it is nowhere near the rise in prices that preceded the crash.

    There’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did in the early 2000s.

    3. We don’t have a surplus of homes on the market. We have a shortage.

    The months’ supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued appreciation. Today, there’s a shortage of inventory which is causing an acceleration in home values.

    4. Houses became too expensive to buy.

    The affordability formula has three components: the price of the home, the wages earned by the purchaser, and the mortgage rate available at the time. Fourteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased and the mortgage rate is about 3.5%. That means the average family pays less of their monthly income toward their mortgage payment than they did back then.

    5. People are equity rich, not tapped out.

    In the run-up to the housing bubble, homeowners were using their homes as a personal ATM machine. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. Prices have risen nicely over the last few years, leading to over fifty percent of homes in the country having greater than 50% equity. But owners have not been tapping into it like the last time. In fact, homeowners have cashed out $500 Billion less than before the crash last time. 

    Bottom Line

    If you’re concerned we’re making the same mistakes that led to the housing crash, give me a call to discuss at 909-631-0006!

    Related Articles

    Keep reading other bits of knowledge from our team.

      Request Info

      Have a question about this article or want to learn more?