Our market is more like a mountain than a bubble. Here’s what I mean by that.
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Is our real estate market in a bubble that’s eventually going to burst just like it did a decade ago?
Fortunately, no. Instead of a bubble, imagine that our market is more like a mountain. Home values have been steadily increasing for a while now, but once they get to the top of the mountain, they’ll drop off a bit before rising again.
In my view, this is because buyers don’t get qualified for mortgage loans as easily anymore. In fact, one of the most challenging parts of buying a home is first getting qualified for a loan. Everything else about the home buying process is fun, but getting a loan isn’t easy. This means buyers who get approved for loans aren’t defaulting, foreclosing, or short-selling anymore.
Our market is a mountain, and that mountain is growing. Will prices eventually drop off in a few years? Yes—inventory will increase to the point where buyers will have more than enough homes to choose from and we’ll transition into more of a buyer’s market.
So if you’re thinking of buying real estate, don’t let the rumors of an impending crash hold you back. As I always say, it’s better to buy real estate and wait rather than wait to buy real estate.
If you have any more questions about this topic or you’d like to start your home buying journey, don’t hesitate to reach out to me. I’d love to help you.