What homebuyers are waiting for.

As the housing market evolves, many prospective buyers are hesitant to enter the market, waiting for a dramatic drop in home prices reminiscent of the 2008 crisis. However, current indicators suggest that such a scenario is unlikely. One major factor is that foreclosures remain significantly below pre-pandemic levels, indicating a stable homeowner base. According to the Federal Reserve Bank of New York, this stability, paired with the financial strength of mortgaged homeowners—where the majority have FICO scores above 720—suggests a resilient market. Moreover, home equity is substantially higher today compared to a decade ago, where only 1.8% of homes are now 'underwater,' a stark contrast to the 23% in 2010. These metrics demonstrate that homeowners are less likely to default, further underscoring market stability. In addition, the Loan-To-Value ratio has significantly dropped to 46.6%, and nearly 40% of homes are owned outright, reducing the financial strain on a vast number of homeowners. Instead of delaying their purchase in anticipation of a housing market crash, potential buyers should consider the current conditions that favor ownership and investment in real estate.