The Dallas housing market has come a long way since the crash in 2008. The market is now in a very different place, with different demands and needs. In this blog post, we will explore how the housing market has changed and what to expect in 2022. We will look at supply and demand, new construction, mortgage lending standards and more!
The housing market crash in 2008 was caused by a number of factors, including adjustable rate sub-prime lending, over-leveraging and more. This crash led to a decrease in demand for new homes and an increase in foreclosures. As a result, builders stopped building new homes and the market entered into a period of stagnation.
In recent years, the Dallas housing market has made a strong recovery. The economy is improving and there is an increasing demand for new homes. However, after spending a full decade with very little building, builders have not been able to keep up with this demand, leading to a shortage of new construction.
Despite these challenges, the Dallas housing market is expected to continue to grow in 2022. Interest rates are expected to rise, but this will not affect homeowners. An important difference between 2008 and 2022 is most homeowners today have fixed rate mortgages. Whether interest rates rise or fall a homeowner’s payment will not change.
ln 2008, many homeowners had adjustable rate mortgages. Rising interest rates caused homeowners’ payments to increase. Many homeowners ended up in foreclosure. So many in fact, that many mortgage companies went out of business due to their financial losses.
Higher interest rates triggered foreclosures and bank failures back then. Today, rising rates will not affect current homeowners, but it will help bring stability and balance to the housing market.
The Dallas housing market has come a long way since the crash in 2008, but there are still some challenges ahead. However, with interest rates expected to rise and new construction on the horizon, the future looks bright for Dallas homeowners! Thanks for reading and be sure to check back for more updates on the Dallas housing market!