Are we in a housing bubble? These successful realtors answer. Here’s what they said…
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“I do not. Only because of the housing bubble that we had seen back in 07 08 time frame. What we’re experiencing now is very different. So I would say no.” – Melissa Johnson
“No, we’re not in a housing bubble. In fact, we have no signs and symptoms of a housing bubble. Today’s market is quite different than what we had in 2008. The people have a lot more equity today as compared to 2008, so forth. So we’re certainly not in a housing bubble. The prices that you see today are a combination of a couple of things. Number one is the lack of inventory and also the low interest rate over the last two years. Plus the pandemic was the cause of a lower inventory. People didn’t want buyers walking through their house and bringing covet in. So these are a couple of reasons why we have such a hyperactive market and higher prices. – Ismail Kolya
“Yes and no. It depends where you live.” – Ann Lenoir
“I don’t know if we’re in a housing bubble. I don’t like to call it a bubble because bubbles pop. I got some good advice from the Vice president of Dr. Horton one time that I do a lot of land development also, and he was telling me that he uses the economy as a balloon.
So he said the economy, when we come into these market changes and everybody wants to predict the market changes. So it’s a little bit comical. I think everybody’s trying to and the one thing that I’ve learned over the years is that everything is different or similar, but not the same.
But getting back to what the device that the Horton guy gave me was, it’s like a balloon and sometimes the balloon will deflate and inflate. The one thing that you want to make sure is that you find wherever your market area is, you find where the center of the balloon is and you kind of stay in that center of the balloon when you’re investing or whether you’re buying property unless you’re doing it for the long term.
Not all scenarios, but most scenarios, if you can stay inside, you’ll still be fine. When the market does come down, it does deflate. You’re still fine because you’re within, I guess some people call that inside that balloon. So as far as a bubble. I don’t think the bubbles because when people use that word bubble, bubbles pop and then bubbles go away. I don’t think even in a down market, there’s still a lot of real estate that changes hands and you just have to change and shift how you’re approaching the market.” – Chuck Zepp
“No, because the bubble is going to crash. I don’t think we’re going to crash. We’ve got a challenge right now with a lot of institutional buyers who are buying and then turning it into a rental. And that rental is driving the rental market. But it also depreciates excuse me, it depletes the amount of inventory because they’re buying cash, which is fine, I get that. But it’s not a bubble because we have such demand, particularly I’m in the Florida market. Florida is more insulated than everybody else because everybody’s moving here. There are some areas that are going to see a decline in value. We’re already starting to see that more time on the market, price reductions are occurring, which wouldn’t occur in the past. So I think we’re in for a couple of years and quite honestly, the current administration isn’t doing anything to help it. And that’s not political, that’s just a statement of facts and financial.” – George Philbeck
“It feels like the bubble of everything, I’ll be honest. But I do think that it’s much different than 2008. I was there during that time and people were getting loans they never should have qualified for. Nowadays people have more equity in their home, so even if they do have some financial trouble, they’re able to sell their home and still come out okay and not have to flip upside down. So I do think that it’s different. There are many parts to this economy, so there’s world peace or not peace and there’s just been a lot of government intervention that we didn’t experience before. So if someone tells you exactly what’s going to happen, I would run because you’re going to have to watch and watch the trends.” – Carol Perry
“If you mean housing bubble 07 08, no, none of the social economic indicators are there like they were there that time. We are in a very complex market and our economy, the world economy is affecting us, but definitely not a housing bubble, especially not where I sell Florida, where our own little creature, the demographics for our buyers are different. So I wouldn’t say that we’re shield from the real estate market as a whole, but we’re a little bit different. – Cindy De La Rosa
Agents we interviewed:
Ismail Kolya – https://www.ishyourrealtor.com/
Chuck Zepp – http://www.chuckzepp.com/
Melissa Johnson – https://melissajohnson.movetojacksonville.com/
Ann Lenoir – https://annlenoir.exprealty.com/
George Philbeck – https://georgephilbeck.exprealty.com/
Cindy De La Rosa – https://cindydelarosa.exprealty.com/
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