Recently, a lot of clients have asked me if we’re in a housing bubble. I get it; things have been hot for so long that everyone is waiting for a crash. Let’s take a look at the numbers and discuss whether we’re truly in a housing bubble.
The first thing we should look at is the last housing bubble. The market from 2008 was caused mostly by predatory lending practices, which led to people getting financing who didn’t qualify. When negative equity started building up, a lot of people
were left in a big jam. We’re in a very different position right now, and this graph proves it:
This graph shows that home values have historically increased, and the last housing bubble was a bit of an anomaly.
"This market looks like it’s here to stay."
Another thing to consider is that we didn’t need a pandemic to jump-start our market. We already had low inventory before COVID hit. On top of that, interest rates are historically low, which makes buying a home more affordable despite rising prices.
One way you can think about our current situation is that it isn’t a bubble; it’s the market returning to normal after the fallout from 2008. In other
words, I don’t think the evidence supports that we’re in a housing bubble. This market looks like it’s here to stay.
If you would like to take advantage of our great market, give me a call or shoot me an email. I am always willing to help with whatever you need!
