Is Another Bubble Forming?

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Real Estate Agent with Realty Executives Boston West 113011

 

 

Is Another Bubble Forming?

Is Another Bubble Forming? | Simplifying The Market

After the housing market bust we experienced across the country in 2008, many experts have been quick to warn that a new bubble may be forming in some areas.

One particular example of this is a recent article pointing toward the California Bay Area’s price gains over the last 18 months.

The quickest and easiest way to show how far we’ve come and how far we still need to go in regards to the ‘Peak’ is to share CoreLogic’s Price & Time Since Peak figures, used to create the map below.

CoreLogic Price & Time Since Peak | Simplifying The Market

Even with the high performance of prices in the Bay Area, the state of California as a whole is still -14.4% below their Peak, experienced in May of 2006.

The biggest challenge facing the housing market’s recovery right now is the lack of inventory available for sale. Prices are determined by supply and demand. Right now buyer demand is out-pacing seller supply, across many price ranges, driving prices up. 

*The lack of inventory is making life difficullt for the seller because where are they going if we don't find a home  for their next purchase.  We need homes to list and sell.  With the warmer weather and thaw they should be coming along and that is what we all want to see in the Needham and surrounding communities I serve.

Bottom Line

Traditionally the Spring months have been the most popular dates sellers choose to list their homes. With additional inventory coming to market soon, meet with a professional in your local market to evaluate your best course of action.

 

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Topic:
Real Estate Market Trends
Location:
Massachusetts Norfolk County Needham Needham Heights
Groups:
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Luxury Home Agents

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Rainmaker
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Pat Laracy Baker Thank you for sharing this report. We often consider this as a possibility, but there is very little we as agents can do about it. Thanks!

Mar 12, 2015 01:40 AM #1
Rainmaker
317,487
Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

That is so true Sandy.  Hope you are having a great spring.  You live in one of my favorite places in the world.  Enjoy.  We are thawing here some but cannot wait for  all the snow to go away

Mar 12, 2015 01:46 AM #2
Rainmaker
690,106
Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Hi Pat, can't have enough insight on this.  This is especially concerning in those areas where prices have significantly jumped well above pre-recession prices.  

Mar 12, 2015 10:47 AM #3
Rainmaker
317,487
Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

So true Michael.  Happy Weekend

Mar 14, 2015 01:56 AM #4
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Pat Laracy Baker

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