Do you think we are in a housing bubble?
Oh my gosh! I get asked this in every meeting, new group, new conversation. in 2021, we are in an entirely different scenario than that of 2008. I have been following economists very, very closely since we entered into the Pandemic and well, as a part of my job, I just do it, even before the pandemic now I just make sure I do it as a part of my every day knowledge so I can keep my clients positioned for success.
Do I have a crystal ball, nope. What I do know is this: This time, housing supply is at a historic low. Demand is real and rightly motivated. Even if there were to be a drop in prices, homeowners have enough equity to be able to weather a dip in home values. This is nothing like 2008. In fact, it’s the exact opposite.
Nationally, Home values appreciated by about ten percent in 2020, in fact one of my developments that I represent locally appreciated 12%, and they’re forecast to appreciate by about five percent this year. This has some voicing concern that we may be in another housing bubble like the one we experienced a little over a decade ago.
If you want to talk more about the details, let’s do it.