I know it’s hard to not Google “Housing Bubble”, but you should not and here’s why. There is no doubt that we may be entering or already in a market correction. Yes, it’s a market correction not a housing bubble or market crash. There are indicators that experts are pointing out as to reasons why we are not in a bubble or entering a crash.
First, it is much harder to get a mortgage than say back in 2000. Most mortgage loans require full documentation and buyers must meet underwriting requirements. Secondly, we are in an employment deficit environment where there are more jobs than people to fill them. Lastly, we are in a housing shortage. There are not enough properties to fill the supply and demand needs of homebuyers. Rents have begun to skyrocket after the pandemic was offered vaccines.
So instead of googling housing bubble, try typing in real estate market correction or market normalization. This is much more likely to describe what we are currently experiencing. Yes, interest rates will mostly likely reach 6%. According to the Feds, they are conducting a balancing act trying to bring down inflation. Something must give, and the real estate market was a prime target with the increase of interest rates. For years, we have seen nothing, but appreciation, bidding wars, and a market frenzy. We all know that doesn’t last forever. If you have been around long enough, you have been through the highs, the lows, bubbles, and all the varying corrections of real estate market.
With the right information, you can still make a good move in this market. Life doesn’t stop. People need homes, job relocations happen, and families grow needing bigger properties. Many buyers can now look for properties where home offices can be created to accommodate hybrid employment or full time working from home positions. In fact, many homeowners in the Bay Area have been able to sell for higher prices move to less expensive states because of fulltime working from home opportunities. Oh yes, those stairs never get easier, especially for Seniors.