Housing Market Crash Signs 2019: Is the US Housing Market Looking at Another Crash in the Following Period?- Sat Apr 20

The first quarter of 2019 seems to be evoking the notorious crash of the housing market that took place back in 2008 when the house flipping rate was set at 11.3%.

Eleven years later, already in the first quarter of 2019, house flipping is almost touching the same rate as in 2008, and given the fact that house flipping represents one of the red flags that may indicate an upcoming crash in the market, market watchers are debating over the probability of entering into yet another housing bubble that is likely too burst.

The current house flipping rate is set at 10% in Q1 2019, which is why some analysts fear that this indicator may be announcing another housing market crisis.

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However, the Wall Street Journal reports that although the rate is similar to the one in 2008, the situation is not as negative as before.

Housing Market Crash Signs in 2019: Are We Witnessing the Very Beginning of Another Market Bubble?

House flipping is defined as owning a home for less than two years before reselling it, and with showcasing rates that indicate proportions of a crisis we have seen in 2008, some investors and analysts are concerned.

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However, economists and experts doesn’t seem to be worried as they claim that house sales are far less risky than it was the case more than a decade ago.

As a reason behind this claim, experts added that corporations are better funded nowadays, while the market has transformed as well, contributing to a higher level of stability.

What may also prevent the supposed crash is the fact that sellers have a back up in form of higher median rates for flipping a house than it was the case 11 years back, having the opportunity to acquire double median rates for house flipping when compared to 2008.

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Even though the market is showing red flags and pre-crisis signs, proportions of a potential crash, even if would take the place in the following period, would have a far less devastating impact.

 

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