Are we in a housing bubble? Is the market going to crash again? Should I wait and buy later?
The simple answer to those questions is NO, there is no housing bubble right now, the market will not crash and probably waiting to buy a house will only make it more expensive or even unreachable for some individuals.
The main drivers of the current real estate boom are 3:
- Record low interest rates.- This allows buyers that qualify for a mortgage to expand their purchasing power and afford bigger houses or better areas.
- Shortage of homes.- Offer and demand play an important role in the market and having a shortage of inventory and a high demand has only one result, rise on prices.
- Covid19.- The pandemic has pushed adults to work from home and kids to take their lessons at home, many families have decided to move to bigger houses, relocate to other states to save money or simply try to leave the city for the suburbs or even rural areas.
The good news is that interest rates eventually will increase pulling down the demand and making the market to correct, however it doesn’t mean house prices are going to drop but it is expected they will stabilize.
Are you looking to buy or sell real estate? Give me a call, will be happy to help you.
Clarisa Moody – 813 446 2003
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