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2007 had ten times more housing supply than today

Sacramento Appraisal Blog

That’s what 2007 had compared to right now. Today I want to share a stunning supply visual for Sacramento, and talk briefly about what’s happening with sellers and prices. Enjoy if you wish.

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The Similarities Between 2007 and Today

Appraisal Buzz

During the 2007-10 mortgage default meltdown, appraisals were a target of complaints and allegations by lenders, the GSEs, some state appraisal boards, and a few unscrupulous entrepreneurs. As appraisers, we faced tremendous pressure from buyers, sellers, real estate agents, and loan officers during the previous run-up.

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Lower mortgage rates are stabilizing the housing market

Housing Wire

What I mean by a credit bust is that after the housing bubble burst in 2005 into 2006, we saw a massive increase in supply. These were forced credit sellers, which means these sellers don’t sell to buy a home like a traditional seller does. Total inventory levels. NAR: Total Inventory levels 1.22

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You can’t buy what’s not for sale in the housing market

Housing Wire

The housing market functions differently than other markets because it can be characterized as a heterogeneous, thinly traded, illiquid market. In other words, it’s a diverse market with a wide variety of different homes of varying ages and levels of repair, and sales happen very rarely. The result is fewer sales.

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Housing Market Tracker: Inventory falls even lower

Housing Wire

This is one reason housing inventory has taken so long to bottom out. Mortgage rate volatility was so wild in the second half of 2022 and even this year that some home sellers are gun-shy in listing their homes, since they will be buying another one. In 2007, when sales were down big, total active listings peaked at over 4 million.

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Housing Market Tracker: Spring inventory grows

Housing Wire

The spring housing market music is playing, and purchase application data and active listing inventory rose together last week. In 2007, when sales were down big, total active listings peaked at over 4 million. We had high inventory levels while the unemployment rate was still excellent in 2007.

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Housing Market Tracker: Weekly inventory adds 1,339 homes

Housing Wire

The weekly data shows some good news for the housing market ! With mortgage rates also falling, I am hopeful that more people will list their homes and buy another, so we can get back to a more functional housing market. But after this week’s report, we should have a low-level base formed for housing to stabilize.

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