Are We In A Housing Bubble? Are You Heading For A Crash?

Today weโ€™re going to look at some facts. Are we in a housing bubble? Are you heading for a crash? Then the number one thing to consider is when is the right time for you to buy.

๐€๐ซ๐ž ๐–๐ž ๐ˆ๐ง ๐€ ๐‡๐จ๐ฎ๐ฌ๐ข๐ง๐  ๐๐ฎ๐›๐›๐ฅ๐ž ๐€๐ง๐ ๐€๐ซ๐ž ๐–๐ž ๐‡๐ž๐š๐๐ข๐ง๐  ๐…๐จ๐ซ ๐€ ๐‚๐ซ๐š๐ฌ๐ก?

Today weโ€™re going to look at some facts. Are we in a housing bubble? Are you heading for a crash? Then the number one thing to consider is when is the right time for you to buy.

๐‹๐ž๐ง๐๐ข๐ง๐  ๐ข๐ฌ ๐ฐ๐š๐ฒ ๐ฆ๐จ๐ซ๐ž ๐ซ๐ž๐ฌ๐ฉ๐จ๐ง๐ฌ๐ข๐›๐ฅ๐ž ๐ง๐จ๐ฐ ๐ญ๐ก๐š๐ง ๐ข๐ญ ๐ฐ๐š๐ฌ ๐›๐š๐œ๐ค ๐ญ๐ก๐ž๐ง.

Way back 2007-2008, the down payments were small, if not, theyโ€™re none existent. Today, lenders want to see bigger down payments, they want to see verified income.

๐–๐ž ๐ก๐š๐ฏ๐ž ๐ฏ๐ž๐ซ๐ฒ ๐ฅ๐จ๐ฐ ๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ.

Right now, weโ€™re 2 ยฝ of supply in the marketplace, almost across the whole country. Some places have 1 month or even less, which is a strong sellers market.

๐“๐ก๐ž ๐š๐ฆ๐จ๐ฎ๐ง๐ญ ๐จ๐Ÿ ๐ž๐ช๐ฎ๐ข๐ญ๐ฒ ๐ข๐ง ๐ก๐จ๐ฆ๐ž๐ฌ ๐ซ๐ข๐ ๐ก๐ญ ๐ง๐จ๐ฐ ๐š๐œ๐ซ๐จ๐ฌ๐ฌ ๐€๐ฆ๐ž๐ซ๐ข๐œ๐š ๐ข๐ฌ ๐š๐ฅ๐ฆ๐จ๐ฌ๐ญ ๐Ÿ’๐ŸŽ%.

This means that If you own a million dollar home or half a million dollar home, you have $200,000 equity in that home. If the market goes down a little bit, youโ€™ve got a lot of cushion to not sell your home or not be able to afford that home.

Those are the three reasons why the market is very strong right now, and weโ€™re not headed for a crash.

Now, letโ€™s look at one fact to consider when to buy a house.

๐ˆ๐ง๐œ๐จ๐ฆ๐ž๐ฌ ๐ก๐š๐ฏ๐ž ๐›๐ž๐ž๐ง ๐ ๐จ๐ข๐ง๐  ๐ฎ๐ฉ ๐Ÿ‘-๐Ÿ“% ๐š ๐ฒ๐ž๐š๐ซ. ๐‡๐จ๐ฎ๐ฌ๐ข๐ง๐  ๐ก๐š๐ฌ ๐›๐ž๐ž๐ง ๐ ๐จ๐ข๐ง๐  ๐ฎ๐ฉ ๐Ÿ•-๐Ÿ–% ๐š ๐ฒ๐ž๐š๐ซ.

What does this mean?

This means that the amount of money people are making is not going up as much as the cost of living in the same house that theyโ€™re looking at. This can create a problem where people canโ€™t afford to live in the homes that they want based on the money theyโ€™re making.

Taking all those points into consideration, all the major economists out there that are reporting their projections for next year are all expecting houses to be about 5% across America next year, and another 4% in 2023.

Take all those pieces of information, digest them, and see whatโ€™s right for you. But the one thing you should always consider no matter whatโ€™s going on in the market is, how long are you going to live in that home?

If you have any questions, or if you want to discuss more about this, feel free to reach out.

Talk to you soon!