It was only last year when all you heard or read in the media was doom and gloom. Then we started to see frequent mention of a reviving housing market with talk of “green shoots”. In recent months it became apparent that the real estate market was in full upswing. But lately I have begun to hear talk of a housing bubble! Really, a housing bubble?
It is true that home prices have rebounded about 20% since the bottom of the real estate downturn. But there is a distinct difference between the home price run up of the last decade and the current upswing. During the previous boom, listings abounded and sales soared based on lax lending standards.
In today’s market, rising prices are driven by a shortage of supply, pent up demand and low interest rates. Lending standards remain stringent, although they are relaxing somewhat.
In the future the lack of easy money will act to temper any fever that may develop and as prices rise, more sellers will be willing to sell. With increased supply, housing price increases will moderate.
I have been a realtor for 32 years and have seen many different real estate markets. We tend to forget that real estate is cyclical. The market goes up and the market goes down. Right now the market is going up and should continue for several more years. Exactly how long is anybody’s guess.
If you feel that now may be a good time to buy or sell real estate, I hope you will contact me to discuss how I can help. I am a leading realtor in the area and was recently named the number one agent in the Beach Cities office of my company. I know the neighborhood, understand the market and have the experience to get the job done. Let’s talk!