SoFi Blog is one of my favorite destinations for financial perspective. This recent post from Liz Young presents a pretty good view on the current housing sector challenges:

https://www.sofi.com/blog/liz-looks-housing-3/?bulletsix

Is this like the 2008 crash? Maybe. If Liz’s observations hold true, it might mean good news for long-time homeowners (slower growth means more stability in property taxes). Homebuyers will enjoy a less competitive market, even if they have to endure reduced buying power what with higher interest rates.

The demographic most threatened by a downturn would be those who bought recently and plan to sell soon. These homeowners may face the dreaded underwater mortgage, where the price of the property falls below the outstanding loan amount.

Those seeking to refinance their mortgage may also experience harm, especially if they find themselves in an underwater scenario. Even so, unless you’re facing a financial emergency, interest rates at present will deter most regardless of housing prices.

If, like most homeowners, you plan to keep living in your home for the next five or so years current circumstances will be uncomfortable but not financially devastating. Like any downturn, patience is the key to survival.