03/15/2022
A housing bubble is characterized by rapid unsustainable growth in home prices, eventually "bursting" when demand no longer supports the high home values, followed by sharp price declines. It’s typically caused by an influx of demand from homebuyers and real estate investors.
It is unlikely the housing market will crash because of two main factors:
(1) interest rates are at, and will likely remain at, historically low levels (even if rates move higher by a percent or two) making long-term mortgage financing economical and
(2) due to strong wage inflation, first-time homebuyers or buyers looking to upgrade would likely be eager to step in should prices start drop.
Unlike 2008, this market is driven by supply and demand. The acceleration may slow, but unless there is a glut of extra housing, which there is not, there will be no imminent crash, 2008 was driven by folks getting adjustable-rate mortgages and overleveraging. They defaulted and caused a glut. This time is different.
Get off the sidelines! Get informed or get in line with all those who waited to buy or sell in ‘20 & ‘21. It all starts with a conversation. There’s too much going on for one to not know all their options. Let’s talk!
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