Radio personality and financial adviser Dave Ramsey predicts that the housing market will not crash despite uncertain conditions.
- During his radio show last July, Ramsey predicted that the housing market would not repeat the 2008 crash.
- Ramsey says that the market conditions are different today than in 2008, and consumers should expect different results.
- “This conclusion I came to is that we’re not going to see house prices crash because supply and demand just won’t allow it,” Ramsey says now. “There’s too many buyers chasing too few houses, and that’s going to hold the market.”
Why it’s news
With the current economic downturn, it is easy for consumers to look back at the 2008 recession and compare economic conditions. While the housing market may be difficult for buyers right now, Ramsey suggests they will not see the same difficulties they did in 2008.
To support his claim, Ramsey looked at housing inventory data in 2007 and 2022. He pointed out that the 2022 supply is much lower than in 2008, and while there were more buyers after the pandemic, demand remains high.
So far, Ramsey’s predictions from last year have held true. The median housing prices declined around 10% from June 2022 to January 2023. While the housing market may still not be ideal, that does not mean it is about to crash, The Street reports.
“I do think [the economy] is going to slow down, but that’s a far cry from 2008 that we’re going to see this huge drop that was unprecedented,” Ramsey says.
However, Ramsey cautioned listeners that they should pay attention to the market and listen to various analysts.
“I’ve messed up plenty of times, so you get to decide as grown-ups after you look at this information, whether it’s right or wrong,” he says.