Are we in a real estate bubble? If so, is that bubble about to pop? Let’s discuss this rumor.
Here’s what we know regarding the real estate bubble everyone has been talking about:
The market appreciated from 2009—which was the bottom of the market—to 2013. Today, we can see that the market has made a small increase from 2013, putting us as close to the top of the market as we’ve ever been.
We’ve heard what the economists and real estate experts have said about the bubble, but here’s the honest truth: We don’t know.
"We’ve heard what the economists and real estate experts have said about the bubble, but here’s the honest truth: We don’t know.”
What we do know by looking in the rear-view mirror is that the market jumped dramatically between 2009 and 2013, and then marginally between 2013 and 2018 (about 3.5%, depending on your local marketplace). Knowing that, we can predict that the market in the coming future will either plateau or begin to decrease.
One last thing to think about is that interest rates are still at an all-time low, which allows for housing to still be affordable in certain price ranges. Affordability, after all, is based on two things: price and interest rates.
If you’d like to know more or are in the market to buy or sell a home, reach out to me. I’d love to talk to you about the market and what options you have to enter it.