Should We Be Worried About the Next Real Estate Bubble?

Real Estate Agent with Spencer Group Realty

Traditionally, housing markets are not as prone to bubbles as other financial markets. So the question remains: Should we be worried that we may be sliding into the next real estate boom or bubble?

Perhaps we should. But perhaps far more important is the fact that all of today's strong market fundamentals could be worked with creative minds that want to create- with perhaps a few twists and turns- a universe of mortgage loans that works to the benefit of the maximum number of real estate buyers and doesn't do damage because of its "artificial" attempts to create the ideal world with the best interest rates today...with little regard for the effect of higher rates in the future.

We may never hear the last word about the slippery subject of booms and bubbles. Hopefully though, we can use the discussion of the subject to improve our real estate market- as more homes sell and fewer are withheld from the market- will itself smooth out into a more recognizable place in which value rise more slowly and  homes sell in less frenetic transactions. Meantime, to buy or sell real estate in this marketplace, avail yourself to the best professional guidance possible from your real estate and mortgage professionals.

Comments (5)

Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Come on Liam, Does this mean you aren't drinking the Lawrence Yun Kool Aid? I have been speaking about the inherent weakness of the market since the so-called housing recovery reared its head. THere is no sound basis for it other than the banks in collusion with the big REITs over-inflating the sales prices of homes in a feeble attempt to 'drive' market demand. Unfortunately, once the stockholders of the REITs begin to ask why the dividends are not where they need to be, and when the REITs realize they can make a higher return in other investments, the small investors and new home owners will have paid too much for their holdings and we will be right back at square one, i.e., 2008 all over again, only this time MUCH WORSE!

Jul 25, 2013 08:14 AM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information
Howdy and afternoon Liam
Welcome to the ActiveRain Real Estate blogging community! You'll sure find a lot of mighty fine folks here in the community to get to know. I'm one of the many ActiveRain community members which are an ActiveRain Ambassador.
If you should ever have any questions about how to do anything or about the rules of the ActiveRain community, please feel free to contact me either by sending me a e-mail or by giving me a call, I'll sure be mighty glad to give you a helping hand. If for some reason I don't know the answer to a question which you might have, I'll sure will find out the answer and get back to you with the right answer.
Take the time to look at the different groups within the community, pick some different groups to join, post your blog posts in them, be sure to take the time to read the posting guidelines of each group you might want to join, folks sure will want to follow them. Members can join as many or as few of the different groups within the community as they would like to. Members are able to post their blog posts in 5 different groups at a time.
Keep up your mighty fine job of posting! I'll be looking forward to seeing even more blog posts written and posted by you, plus seeing you join some of the mighty fine groups in the AR community.
Have a good one
Dale in New Hampshire
Jul 25, 2013 10:35 AM
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Welcome to Activerain and I hope you are learning a lot and if you ever need any assistance, don't hesitate to check out my blog, email me, call me, I will be glad to help you in any way possible. Also, check out the main page of Activerain and look for the Activerain University tab, there are lots of educational webinars to help you build your business.

Jul 25, 2013 03:04 PM
Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team
Ken's Home Team LLC. - Vancouver, WA

Welcome to Activerain from from all of us at Ken's Home Team. I think you will find this site to be a wealth of knowledge and referrals. This really is the best real estate blogging and real estate network on the internet. If you have any questions about Activerain, reach out to the wonderful Ambassadors here in the rain. (They are a wealth of knowledge and were picked by the Activerain staff for their willingness to help others)

Jul 25, 2013 03:08 PM
Loan Shoppers
East Long Beach, CA
We shop for you

They are overvalued when you look at real unemployment rates (not the fake derived numbers the govt/ concocts), wages, and interest rates being this low. Given that, you have to live someplace so if your mortgage will be lowr than your rent, why not buy IF you will stay put for 10 years or more and the location is ideal for you and for potential future buyers.

Aug 02, 2013 12:55 AM