The Housing Bubble Discussion Again? 🏘
I can’t tell you how often I am asked when I ‘think this bubble is going to burst.’ The ‘mockingbird media’ tends to believe that we are in the midst of a major bubble and that we are soon to be in a world of hurt! This is not about a ‘bubble,’ this is about simple economics, supply & demand.
When asked if today’s high buyer competition and rising home prices are evidence of a housing bubble, Lawrence Yun, Chief Economist at NAR, said “this is not a bubble. It is simply lack of supply.” Today’s housing market is healthy and rising prices are driven by real buyer demand.
We currently have a record-low number of homes available to buyers. It is impossible to go from a ½ month supply (which we currently have here in the Charlotte Metro) to a 6-month supply (which is a neutral market - good for both buyers AND sellers) in 1-2 years. Our inventory will continue to be low for a considerable amount of time.
- The total number of active listings (nationally) this month is down a record 54% from the same week a year ago, according to Realtor.com. In turn, that painfully low inventory has driven national housing prices up 17.2% over last year.
- Almost half of homes now sell within one week of being listed. That is broadly across all price ranges as well.
For homebuyers, this can be disheartening; for sellers, celebratory. Hiring a real estate agent who can coach buyers to win at bidding wars is critical in today’s market. Speaking with a seller who just sold their home recently, they could have EASILY walked away with another $25K for the sale of their home. Hiring the right Realtor® is critical to your home selling super success!
- In a recent article, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), discussed the state of today’s housing market.
- When addressing whether or not today’s high buyer competition and rising home prices are evidence of a housing bubble, Yun said that this “is not a bubble. It is simply lack of supply.”
- Today’s housing market is healthy and rising prices are driven by real buyer demand.
Let’s connect to talk about the best ways to navigate today’s energetic housing market. Call or text me at (704) 491-3310 or email me at SavvyBroker@me.com.
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© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | The Bubble Discussion Again? 🏘
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