In the current market, home sales are increasing and houses are selling in record time. Reflecting on the 2006 housing bubble, the worry for many Americans and one of the most asked questions on Google is: “Are we in a real estate bubble?” The answer to that question, however, is no.
In a webcast with Brian Buffini, Dr. Lawrence Yun reassured us that we currently have 1.2 million homes available for sale, and when home sales began to decline in the last housing bubble, there were 4x as many homes listed for sale. We don’t have the shady, risky mortgages we had before. House prices are rising and there are more down payments than ever before, creating greater equity, fixed rates, and a more stable dynamic. There’s an army of home buyers who want a second chance opportunity and don’t expect any persistent price decline.
Check out the data below to understand why this is NOT a housing bubble.
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