The short answer is “no.”
Nationwide bidding wars and increasing home prices have made many people wonder if we’re in a bubble that’s about to burst, like in 2007.
Housing experts say this is not the case. In fact, most indications tell us that today’s real estate market is healthy. And, as more millennials reach home-buying age, the demand for homes is not expected to decrease anytime soon.
How is this market different than in 2007?
- Prices were “artificially” inflated as a result of speculation and over-extended credit.
- Lending restrictions were lax and certain loan products were risky. Buyers received loans for houses they could not afford and could not sustain long-term.
- Prices have risen more naturally, based on the basic principles of low supply and high demand.
- Loan products are less risky, and many buyers opt for fixed 30-year mortgages.
What does this news mean for you as a buyer?
- While interest rates will remain comparatively low, they are on the rise. Additionally, home prices are not expected to fall in the near future. This means waiting can cost you more than buying a home now.
- Competition and demand will remain strong, especially as more millennials enter the market. Experts suggest that in the next three to four years will see the millennial generation will reach the peak first-time homebuyer age.
- If you are waiting for prices to fall, don’t wait. You may miss out on locking in a low interest rate on a home you love. Whether you are buying or selling, we are here to help you navigate the real estate market.
All information is based on ” Sorry to burst your bubble, but we’re not in one, housing experts say” by Anderson, Taylor. Inman News, February 3, 2022.