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A Booming Market without the Bubble?

Are we in an ominous real estate bubble?

As a professional real estate broker, I am continuously asked questions by both sellers and buyers.  The question coming up most recently is this: “Are we in a real estate bubble and is it going to burst again?”.  For the last two years, the Real Estate market within the Puget Sound has been on a streak and homeowners as a whole want to know where they stand.

So, are we in a bubble within the Puget Sound?  Nationally?  The Mortgage Professional of America (MPA) doesn’t think so.   Here is a link to a recent article published on their website:  https://www.mpamag.com/market-update/housing-boom-is-back—-but-without-the-bubble-84804.aspx

Home selling and buying will always exist.  Housing (shelter) is a fundamental need for humanity.  As long as babies are born, people get married, people get divorced and people pass away; the need for real estate to be purchased and sold will continue.  If you are expecting a baby, does it matter if a bubble bursts?  Probably not.  It’s likely more important to have security and a home for your new bundle of joy.  If you own that home long enough, it will appreciate; it did yesterday, it will tomorrow. In the long term, Real Estate is a safe investment no matter what it’s short term ups and downs.

If you are worried about the need to strategically make a move based on the potential of a future bubble (or it’s potential burst), you might rethink that strategy.  If you need to sell your home; sell it.  If you need to buy a home because your needs have changed; buy one.  If you are waiting for the market conditions to be perfect either way, you may be waiting a long time; there really is never a “perfect”.

If you are considering making a change; make a clear decision about your direction, take a deep breath; and move to action.