Google has become the go-to guru for answers to any and all questions. Have you found yourself googling answers to real estate questions such as: Will the housing market crash? Why is the market so hot? How much over list price should I offer?
According to Google analytics, recent housing questions have increased 350%. That is huge! Perhaps the biggest concern for consumers right now is the fear of a real estate bubble. Lawrence Yun, the chief economist for the National Association of Realtors, has explained: “This is not a bubble. It is simply a lack of supply.”
Add to that, lending policies have also changed since the last bubble, and requirements are much more stringent. If you purchased a property over the past few months, you can be assured that you already have some good equity. This helps to ease foreclosure concerns. Also, rates have stayed low, but have shown recent slight increasing trends.
Of course, prices cannot rise forever, and prices will ultimately plateau. Real estate is a supply and demand business. As long as there is a strong demand and lack of inventory, prices will continue to rise. Current inventory is just over one million homes; at the peak of the last housing bubble in 2007, inventory was more than four million. Recent realtor.com data indicates a whopping 54% decrease in inventory year-over-year.
Today we are experiencing a real estate market unlike any previous market. The competition for ownership is strong, and owning a home is still one of the top goals of Americans. We are here to help our clients achieve those goals in the most aggressive market in history. Thinking of selling? Let us do a market analysis for you!