“Should I buy in a housing bubble?”
This question is in every buyer’s mind these days.
Home values have been rising quickly, and eager buyers compete for every listing as soon as it hits the market. It certainly appears that we are in a housing bubble. And bubbles often burst.
Let me explain why we are NOT in a housing bubble and why you should buy NOW.
The Bubble. It’s All About Supply and Demand
Today’s housing market suffers from low inventory and strong buyer demand.
However, the fundamentals are solid. Here’s a quote from Morgan Stanley:
“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation.”
The housing inventory is so low because developers did not build enough homes over the past 10 years while the number of qualified buyers has steadily increased.
Everybody seems to be buying today: Millennials buy their first home, baby boomers right-size, Gen-Xers move up or buy a second home, and even Gen-Zers (those younger than 25) are joining the ranks of home buyers.
The low interest rate environment is adding fuel to the fire and accelerating an already hot market.
There are no clouds on the horizon. Unlike 2008, most buyers have excellent credit scores, they make sizeable down payments, and mortgage defaults are at record lows.
Should You Buy in Today’s Competitive Market?
Yes, you should. Waiting will cost you.
There are two main reasons:
Home values will continue to rise at a rate of 7 – 10% per year
Interest rates will likely increase as the economy fully reopens
I see quite a few buyers selling homes they purchased only 2 to 3 years ago. They will realize a 20% profit without making improvements to the property.
You know the saying … the best time to buy would have been a few years ago, the second-best time is now.
So, don’t wait.
Call or text me today and let me help you find your dream home before prices and interest rates climb even higher.
Call or Text me NOW at (614) 975-9650!