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.