Real Estate News
Here is what to know about the housing market
Sandra P. Soto
725 East Palmetto Park Rd
Boca Raton, FL 33432
Are we in a housing bubble?
We can see prices go down without a crash
What could guide to a housing buble burts or a housing market crash?
A bubble is defined as a period of rapid market growth of an asset and in this case, we are speaking of Real Estate Homes. Home price thickening was going higher and higher every month from August 2020 to mid-year 2022 based on home sale price data from Redfin. Since then, prices have declined, though as October 2022 the prices of homes are still 5% year over year. Home supply is low in certain parts of the country in that is the cause of fast rising home prices. Home builders are putting a brake in major developments and home owners are staying in their current homes due to higher mortgage interest rates.
Real Estate markets that had a fast growth in prices are more likely to see bigger decline until prices even out to fit long term demand, quoted Jarred Kessler, CEO and founder of EasyKnock (company that provides an alternative for to home equity loans). Texas, Miami, Nashville, Austin and Phoenix are places that more likely will have a 10% or more decline in prices.
There are a few factors that could contribute to an unsteady housing market:
for the homebuyer this is not the time to buy real estate due to high prices and high interest rates.
If too many people are out of work we will see an increase of homes going into forclosure
At this time materials are expensive and unavailable, there is also a shortage in labor since the start of the pandemic, this is making builders a little nervous and is in part causing the home shortage.