Are We In A Housing Bubble?

On the daily, I hear from potential buyers and sellers that they are waiting for the right time to buy or sell. I also hear many people saying that they're waiting for the market to crash because we're in a bubble. Today, we'll dive into this question and see if we really are "in a bubble". 

What are some warning signs of the market crashing? Typically you see the Federal Reserve taking some actions, high inflation, and a significant increase of prices in a short period of time. Simply looking at this on the surface, there are definitely some warning signs we need to take into account. However, there are so many other signs showing that it could go the other way too. 

According to Keeping Current Matters the different between the crash in the mid-2000s and now is that prices have skyrocketed due to a lack of inventory. from 2005 to 2007, the amount of homes in supply actually increased along with the prices too which is definitely not common.

With inventory struggling and mortgage rates still historically low, demand is very real compared to the previous crash. Purchasing a home in today's market with the escalating rent happening all over the United States makes obtaining home-ownership one of the smartest things you can do right now. 

Lastly, many experts and agents are seeing that this market is still going strong. Even with mortgage rates on the rise, pressure from rent increases and buyers wanting financial stability makes this a different type of environment compared to the mid-2000s. Ultimately, this demand is generated artificially, this demand is very real and housing is still trying to catch up.

At the end of the day, my personal opinion is that you can never time the market whether you're looking to buy or sell. My go-to advice is that if you are ready to purchase a home now, then its the right time to buy no matter how the market is. Does the market make things more easy or more challenging? Of course - your experience is dependent on the market. However, if you're willing to dive into the market and have a great agent like me, it will still be one of the best decisions you'll ever make landing that offer on a home. 

Contact me today and let's get your home search or sale started!


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