Adventures in real estate… are we in a bubble? | neighborhood supplement
You may be reading or hearing about the current real estate market and wondering if we are in a bubble and heading for a crash. It is true that the market has changed in recent months, and it is important to understand the data and expert opinion on why the sky is not falling right now and there is no crash at the moment. horizon.
Two factors indicate that the market is going through more of a correction and stabilization, not a crash.
The first reason is basic economics…supply and demand. The housing supply needed to balance the market is still historically low. In other words, there are not enough homes available for people who want to buy them. Looking at market conditions in 2007, there was a glut of homes for sale, and many were short sales or foreclosures. This led to lower prices and a dramatic drop in home values. Today, there is still a shortage of inventory, which contributes to the continued appreciation of the home.
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During the housing bubble, it was much easier to get a mortgage than it is today. Buyers who bought a home after the bubble were much more qualified than they were in the years before the crash. Lending standards have risen dramatically and the predatory lending practices of the day have all but disappeared. Now buyers are much less likely to end up in foreclosure due to the higher lending standards to qualify for a mortgage. Home price growth is supported by strong housing market fundamentals and tighter lending standards.
We are currently heading towards a more balanced market, which means that it favors neither the seller nor the buyer. If you are considering selling your home, having the right pricing strategy to meet current market conditions is essential. If you’re ready to hunt for your next home, now is a good time to start home shopping, as interest rates have kept many buyers on the sidelines and you’ll have less competition for your loved ones’ home. dreams.
If you are considering buying or selling, call me at 402-480-4373 or email [email protected] to request a free copy of “My Guide to a Successful Home Sale” or “The Home Buyer’s Guide/Everything you need to know about buying a home. My books are full of valuable advice to help you succeed in your real estate transaction.