What Goes Up Must Come Down — Or Must It?
Low inventory and high demand have been driving home prices at a record pace and to record heights now for months.
Most recently, the National Association of Realtors (NAR) reported in April that the median single-family home price nationwide rose 18.4% year over year in March to $334,500, both record highs.
With prices so high and still rising, it’s natural to be concerned about the possibility of a housing bubble and subsequent burst.
Market ups and downs are nothing new, and it doesn’t take that long a memory to recall what happened to the housing market in the Great Recession, a grinding national affair that included Wall Street failures, massive foreclosures, and housing prices falling an average 33% from a peak in 2006 to a trough in 2011.
That figure is from a CoreLogic report issued in March 2018 that examined the housing market’s recovery to that point. Since then, of…