A lot of people are asking if we’re in a bubble. To figure that out, the first place we should look is at the numbers themselves.
A lot of people have been asking if right now is a good time to buy or sell. But, another broader question I’m hearing a lot is, “Are we in a bubble?”
To figure that out, I think it’s important to look at the numbers. Over the last three years, **the market has seen consistent growth and the interest rates have generally stayed low. **
We can see from this that there isn’t a very high likelihood that the Feds will be raising interest rates in a significant way. In fact, some people are saying interest rates could even drop.
The lower interest rates are, the more people can afford. This is especially important since the somewhat drastic increases we’ve seen in prices over the last two to three years. Right now in our area, we’re starting to see prices similar to those we saw in 2006, 2007, and 2008.
Though interest rates typically rise along with price, this isn’t a trend we’re currently seeing. We can expect prices to continue to rise.
**We’re also seeing homes spending fewer days on market, as well as lower inventory overall. **
However, if you’re thinking of buying, now is still a good time.
If you’re considering selling, the most important thing is to pay attention to supply and demand within the market.
Overall, I’d have to say that most people would not agree that we’re in a bubble.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.