CLEVELAND — The booming housing market has been making headlines nationwide and right here in Northeast Ohio. One of the contributing factors of the current situation: low-interest rates.
But experts are hoping things calm down soon before they spill into other areas of the economy.
Most economists don’t believe the market will crash as it did in 2008. At that time, a surplus of home buyers were being granted mortgages they couldn’t afford, putting themselves in dangerous financial situations. This time around, those aren’t the factors at play.
“I think right now where there is less concern about a housing market crash them than it was last time around when we had the housing market collapse,” said Dr. Bill Kosteas, an economics professor at Cleveland State University.
Dr. Kosteas said this time part of the issue is low-interest rates and part of the issue is supply and demand.
When the pandemic first began construction of new homes…