Today’s housing market is often compared to previous downturns, including recessionary periods, but how closely do those comparisons actually hold up? In episode 45 of the RiskWire Webcast, Chief Economist, Eric Fox, is joined by Sr. Research Economist, Reena Agrawal, where they discuss the data surrounding the housing market of today vs. housing markets of the past.
Key takeaways from episode 45:
- Housing activity is extremely low, with only 4 million existing home sales in 2025. This is one of the reasons we are seeing comparisons between now and the 2008 recession, as we only find similar housing activity following the recession.
- A notable difference between now and the 2008 recession is inventory. Today, inventory sits around 4.4 months, whereas the inventory during the recession was 9-10 months’ supply.
- The lock-in effect remains a defining force in the current housing market. Homeowners with ultra-low mortgage rates are staying put, which ultimately suppresses inventory, and could possibly explain why prices are not going down despite lower sales.
If you’re interested in taking a deeper look at these comparisons, watch episode 45 of the RiskWIre Webcast today: Webcast & Interviews – RiskWire, powered by Veros
For additional information about the housing market or economic trends, visit RiskWire.com today! Also, don’t forget to listen to RiskWire: On the House on your preferred channel: Apple Podcasts, Spotify, and YouTube Podcasts.
