I explain why today’s market is definitely not a housing bubble.
Is this a housing bubble? It’s such a common question nowadays, but the answer is firmly no. There are three main reasons I think this:
1. We’re currently seeing a supply shortage. Nationally we’re seeing 1.9 months of supply where six months is the standard for a balanced market.
2. Housing demand is at an all-time high. This is due to the improving economy and the incredibly low interest rates. It’s a good time for people to get into a new home.
3. A wave of foreclosures is not expected. In 2008, we were expecting a lot of foreclosures. That is not the case at all today.
In short, we are still in a strong seller’s market. I think the rate of home appreciation will start to slow down, but we’re going to be in a seller’s market for quite a long time. It has become the new normal. So if you’re thinking about making a move, give me a call at 919-740-0379. I’d love to hear from you.