Is a Housing Crash Imminent?

Todd Waller explains why he believes there is not a housing crash in our near future.

Is a Housing Crash Imminent?

Todd Waller explains why he’s not expecting a housing crash any time soon


Hey folks Todd Waller here, Studio Four8 for Berkshire Hathaway HomeServices Snyder and Company Realtors. Quick little video here for you. I’m talking with a fair number of purchasers who are trying to pull themselves out of the marketplace because they are worried that there’s going to be a market crash coming in the not-too-distant future. I get it. We’re all a little gun-shy from what happened 10-12 years ago with the Great Recession were housing lead the economy into the dumper by just crashing, losing 20% of equity, and all that fun stuff in the housing market. Here is why I don’t think we have a housing crash coming.


A lot of folks who were pulling themselves out of the marketplace are citing the number of homes that are in forbearance as a result of the pandemic that we are working our way through. So let’s throw some numbers on the table, shall we? At the peak of the forbearance run here due to the covid pandemic there were nearly 6 million forbearance. Forbearance is that time and place, if you will, where the bank and the homeowner say, you know what, we’re going to pause on paying mortgages for the time being, maybe even work out putting those missed payments on the end of the amortization schedule.

Short story is, forbearance is that state where a homeowner is not making the full mortgage payment or not making any payment at all, and the bank is okay with that for a period of time. Yes, there may be some interest rates and interest charges and other fees tacked on there when the home comes out of forbearance. But the reality is at its peak, there were only six million homes that were in forbearance. Right now, here, the middle of April there are 2.3 million homes that are still in forbearance. I know this number still sounds and appears very large, 6 million down to 2.3 that are still in forbearance. 

Inventory Shortage

The reality is right now in the marketplace we are probably running about a 40% deficit on the amount of inventory we need to meet the current buyer demand in our market place nationally. What do I mean by that? What I mean is, we need an additional 3.8 million homes on the market right now to match the buyer demand that we are seeing in the housing market across this country. Last I checked, 2.3 million homes in forbearance, if they all came out as foreclosures, that number, 2.3 million, is still lower than 3.8 million. 

Where am I getting these numbers? Well, the National Association of Realtors was working with the home builders and they came up with that 3.8 million homes that are necessary to match the current demand. The 2.3 million properties that are in forbearance that was through a Forbes article. So I’m here to tell you if you are a purchaser and you’re thinking you’re going to pull yourself out of today’s marketplace and wait for the crash and you’re basing it on those homes that are in forbearance, coming to the market as foreclosures, I don’t see that one happening. 

Housing Crash Unlikely

I will also tell you if you think that there’s a crash coming it’s going to be for something drastically different than what we experienced 10-12 years ago. The Great Recession was led by folks getting some funny money from the bank. Lending standards were very loose. People could walk away from the table as purchasers with money in their pocket because we had things like 103% and 105% financing going on.

Today it’s very difficult  to get yourself a mortgage, you have to be very well qualified to do that. And on top of that, when people are making up the difference between the appraisal value of a home and the sales price they’re using their own cash to do that. They’re not using Bank funny money. If you’ve got questions about all this and how it impacts your specific real estate goals give me a contact here. This is Todd with Studio Four8 at Berkshire Hathaway HomeServices Snyder and Company Realtors saying we’re here to recreate real estate.

How To Buy A Home When You Already Own

The Studio discusses some techniques on how to buy a home when you already own a home.

How to Buy a Home When you Already Own

Can you buy a home when you already own one? The studio discusses!


So you, like many homeowners in the United States, would like to sell your home and move into something different. Whether it’s bigger or smaller that can be a tricky thing to do. So in this short series we want to talk about some techniques that you can do to move from your current home into another one. There are some technical aspects, there are different techniques for every situation. For whether you are buying first, selling first, third options… There’s something out there for everyone. You’re going to need to talk to an agent, talk to a lender, see what makes sense for you. and what’s financially viable. but hopefully we can shed some light on that for you.

Purchase, then List

 One option to consider as a buyer is to actually purchase your home before listing your current home. This may be especially easy for those with a little more financial bandwidth. When you’re working with your agent you go out to find that first home, get it under contract, you should be ready at that point to get your current house on the market. You want to time this somewhere around those critical milestones in your new purchase. Inspection, appraisal, or otherwise. To minimize the impact of having dual mortgages you want a time the closing of those two properties as close together as possible. This is a topic you should consider talking about with your lender.


 Another option that you have is to make your offer on the new house contingent on selling the house that you live in. Now this is a little easier financially, but much more stressful when it comes to timing. It is doable, we’ve done it, even in this market. But there are a lot of details and very careful contingency timing steps that we have to take. Here’s roughly what that will look like. You get your current home ready for sale and we identify a property that you want to purchase, get that property under contract, making it contingent on selling the home you live in. Then we immediately list that house, hopefully get that under contract right away, and we line up all the contingency dates so that they follow one right after the other. So in the end the closing on the old house happens just before the closing on a new house. Now the hardest part about this is what property you’re going to buy. I tell my clients it really depends how long that house has been on the market, how likely is the seller going to be to take an offer contingent on selling your house. It’s doable, we have done it. A little harder in this market, but with the right agent and the right timing you can do that.

Home Equity

 You also have alternative options when it comes to executing this buy and sell when you already own a home. So, you own a home, you have the option of talking with a lender and going after what is called a home equity line of credit. This is where a bank would assess the value of your property, give you a loan in the amount of maybe 80% of whatever your equity is in the property at that point in time, and now you got that equity in your back pocket that you can use to help purchase your next property. You can use that as your down payment, and if it’s a really tight sellers market, you could potentially now make offers that are not contingent on the sale of your home. A little bit of stress there potentially if you’re unsure of the value of your property or if you think the market might be descending at the time. Maybe a little bit riskier.

Alternative Option

There’s also another option that is relatively new to the real estate space. There are some companies out there, there is a company specifically called Easy Knock that will buy your house and give you 80% of the value of your home. Then with that 80% value you pay off your mortgage, you pay the bills that come with the sale of that particular property. And now you have the ability to rent your home back for market value until you are able to find and close on your new home. Then once you move into that new home, the company puts your old home on the market, and any increase in profit that happens as the result of the last sale to this final sale, you share in the profit with that company.