DAVID CHILDERS: Welcome to the May Monthly Market Report for 2022. I’m David Childers, and
for the next 20 or so minutes, Kate Rezabek and I are going to walk through some of the biggest topics
in real estate today. Anything from this crash question, is the market going to crash. Second, where price
is and where things are heading for the rest of the year. And we’ll talk about affordability as well, a big
question on a lot of people’s minds. Our goal is to give you the visuals and the information you need to
be the expert in everything that you communicate to your client.
So let’s hop right in and get started here. First question, why we’re not heading for a housing bubble.
You just about can’t turn on the news or look at something and not hear something about the housing
market and that may have some sort of inference or certainly the headline is this a bubble in the housing
market. Well, we wrote a blog on this just a few weeks back, titled, “Why This Housing Market is Not a
Bubble That’s Getting Ready to Burst.” The central point of that blog post was this graphic right here.
[00:01:01)
This shows home values going all the way back to World War II. And if you think about that, the reason
we go back to World War II is that was the start of the modern day housing boom here in this country. If
you think about GIs coming back from the war and the GI Bill provided for education, provided for
them to go out and buy a home. And ever since then, up until today, there’s been one time in this
country where homes lost significant value and that was back in 2008. So back in 2008 we saw homes
lose value really for two reasons. First reason, loose lending standards. You think back then, no income,
no job, no verification and we know how that ended up.