Are We Experiencing a Housing Market Bubble?

A lot of people have been wondering whether we’re in a housing bubble or if this is simply the new norm. Well, there are a few things we need to consider in order to answer this question.

First, the bubble we saw in 2008 took place in a completely different type of market. Lending practices were loose, and basically anyone could get a loan. Ultimately, this was what led to the bubble. 

"Unless the economy shifts dramatically, we’ll be in this market for a while." 

Now our market is full of multiple-offer situations, and only the strongest buyers can beat the competition. Additionally, we’re in the midst of an inventory crisis that’s pushing buyer demand to new heights. A balanced market typically has six months’ worth of inventory; currently, we only have around a month and a half. Unless the economy shifts dramatically, we’ll be in this market for a while. On top of this, inflation is causing everything to cost more. Everything’s more expensive now, so it makes sense that real estate prices have also risen.

If you’d like to talk about your buying or selling needs, or if you have any questions, feel free to reach out to me. I look forward to hearing from you soon.