When, the economy, soured, we witnessed, the results/ ramifications, from the ensuing, apparent, housing bubble (of 2006). The period, leading – up, witnessed, significant increases, inside the costs of real estate property, and, then, a number of the ramifications, if it soured, including, many foreclosures, etc, and, the influence on pricing! For, yesteryear, couple of months, we now have witnessed, a large rise, in, house – prices, at the historic rate! Will this trend, continue, slow, stop, or, will there, be another, bubble? After, over many years, being a Real Estate Licensed Salesperson, from the State of New York, I have seen, great, and lesser markets, and, strongly, believe, there won’t be any guarantees, if this comes to this! With, that under consideration, this document will attempt to, briefly, consider, examine, review, and discuss, 3 possibilities, if this comes to this.
- No: Perhaps, probably the most – studied, economic theory/ reality, is called, because the Law of Supply And Demand! As long as, inventory remains low, and qualified, buyers, out – number, the homes, available on the market, prices continues to rise. Will they do this, with the same rate? No one knows, beyond doubt? Will, prices, come, tumbling – down, soon? My professional opinion is, the main factor is, buyer perception, together with seller greed! As long as there exists buyer interest, and enough, buyers, that can afford to obtain a house (or, believe, so), there defintely won’t be a bubble! It seems, we are experiencing, a time period of inflation, within the not – so, distant future, and, that can, continue, supporting, rising prices, etc.
- Yes: We have experienced, historic – low, mortgage rates, for several years, now! This has created, mortgage – rates, which might be so attractive, and find the impact, of developing, a perception, of more, bang – for – the – buck, especially, regarding, affordable monthly obligations (since, the majority of home – buyers, use mortgages). How long, will rates, remain low, especially, with regards to, the fears of inflationary pressures, etc? What impact, will other, economic conditions/ job uncertainties, etc, have? When will more homeowners, decide, to offer, so as to profit, from today’s prices, all of which will it create a large increase in inventory, etc, and, transform, this, at a Sellers, to Buyers, etc, market?
- A mixture/ somewhere – between: Perhaps, essentially the most – likely, eventually, result, can create, an industry, and that is, somewhere, between! A more – balanced market, and, a far – slower, rate, of price increases, is, likely, to get, tomorrow’s normal!
Beware, no trend, appears to last, forever! Home buyers, should purchase wha they are able to afford, meets the requirements, etc, plus they perceive, for being, fair – and – equitable, along with understanding, the most effective way, to seem – at, one’s family house, is, like a long – term measure!