Why It’s Not a Bubble
Hi Gina Madeya Windermere Yarrow Bay with April’s market minute. Just like the flowers, our spring housing market is in full bloom!
March was one for the record books with the lowest amount of inventory on record, 76% of all homes selling over their asking price – another record for a median difference of 13% , yes another record. AND 88% of homes sold in less than 15 days, also a record, culminating in a record breaking 30% year over year increase in median home values. These aren’t just stats on a page. I helped two buyers this week get their contracts accepted in multiple offer situations and each escalated between 25-35% above the asking price.
Don’t believe me? Just ask Google!
Questions like "When is the housing market going to crash?” jumped by over 2,400% in the past month while “how much over asking should I offer on a home” increased by 350%. For buyers the struggle is real and have some asking if we are in a housing bubble. The short answer is no but it doesn’t mean we shouldn’t be concerned. When the housing market crashed, 9 million families lost their homes, values plunged 30%, collectively homeowners lost $7 trillion dollars and it took the housing market a decade to recover. The current situation is different.
Today’s borrowers go through rigorous income and asset verification and the industry is more heavily regulated. New lending standards and higher down payments mean todays homeowners benefit from housing stability and equity growth. After the crash, millions of foreclosures flooded the market, depressing prices. Today struggling homeowners have forbearance programs to postpone payments without penalty. The low interest rates have fueled demand where there is simply not enough supply to meet it.
As the National Association of Realtors® Chief economist put it, we are not in a bubble, we are dealing with an incredible lack of supply. Most experts are confident that we’ll experience a market dip, but certainly not a crash. Sustainability at this pace seems challenging but at least for now will continue as buyers remain undeterred in their quest to purchase a home.
𝐈𝐟 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐭𝐨 𝐛𝐮𝐲 𝐚𝐧𝐝 𝐧𝐞𝐞𝐝 𝐚𝐧 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞𝐝 𝐚𝐠𝐞𝐧𝐭 𝐭𝐨 𝐡𝐞𝐥𝐩 𝐲𝐨𝐮 𝐬𝐮𝐜𝐜𝐞𝐬𝐬𝐟𝐮𝐥𝐥𝐲 𝐧𝐚𝐯𝐢𝐠𝐚𝐭𝐞 𝐭𝐡𝐞𝐬𝐞 𝐜𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐈 𝐚𝐦 𝐚𝐭 𝐲𝐨𝐮𝐫 𝐬𝐞𝐫𝐯𝐢𝐜𝐞. 𝐀𝐧𝐝 𝐟𝐨𝐫 𝐭𝐡𝐨𝐬𝐞 𝐭𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐨𝐟 𝐬𝐞𝐥𝐥𝐢𝐧𝐠, 𝐭𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐛𝐮𝐲𝐞𝐫𝐬 𝐨𝐮𝐭 𝐭𝐡𝐞𝐫𝐞 𝐰𝐡𝐨 𝐧𝐞𝐞𝐝 𝐲𝐨𝐮𝐫 𝐡𝐨𝐦𝐞!
Call/text or email me anytime! ginam@windermere.com.
