Reasons Why we are Definitely NOT in a Housing Bubble
Segment 1
This real estate market is very robust, many people fear that it will come crashing down like it did in 2008. Why are we NOT in another Housing Bubble?
Home Values Increased over 16.2% in just 1 year!
1. This time, housing supply is extremely limited
The price of any market item is determined by supply and demand.
In real estate, supply and demand are measured in “months’ supply of inventory,” which is based on the number of current homes for sale compared to the number of buyers in the market.
The Colorado Springs Region has a 2 Week Supply of Homes – Sellers’ Market
Between 2006 and 2008, the months’ supply of inventory increased from just over 5 months to 11 months.
2. This time, housing demand is real
Because Loans were so easy to get – the Buying Frenzy took hold
Many of those people could not afford the loans they received
Many got Teaser Interest Rates that Ballooned in 2 years
Millennials, the largest generation in the country, have come of age to marry and have children, which are two major drivers for homeownership.
You can reach me at719 301 3900 or visit www.BarbHasTheBuyers.com
We are talking about the Top 3 Reasons Why we are NOT in a Housing Bubble. Barb, what is another reason why you think this real estate market is strong?
3. Unlike the Housing Bubble – More Households have Equity
From 2005 through 2007, Americans pulled out $824 billion dollars in equity.
According to Census Bureau data,
over 38% of owner-occupied housing units are owned ‘free and clear’
“17.8 million residential properties in the United States were considered equity-rich
Bottom Line:
This time, housing supply is at a historic low.
Demand is real and rightly motivated.
If you are thinking of making a move you can call Barb at719 301 3900 Or visit www.BarbHasTheBuyers.com
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