Real Estate Bubble….Or Not?

There’s a lot of talk in the mortgage and real estate market about whether the recent run-up in housing prices is a “market bubble” comparable to 2008. While housing prices have increased dramatically in the last 12 months, I’m not convinced this is the same situation. Let’s take a look at some differences:[table id=1 /]

So, there are some key differences in the market. Mortgage loans are much harder to qualify for, and there isn’t nearly as much speculation in the market as there was back in the housing crisis days. Much of the rise in the market value of real estate has had more to do with populations leaving urban centers during the COVID-19 pandemic, and the fact that the lowest interest rates of all time have given every buyer more purchasing power than they’ve ever had before.

Of course, any market has its ups and downs, and there will be a down cycle in the future. But, the cost of waiting may be detrimental in a rising interest rate environment.

Check out my Cost of Waiting Analysis to see some real figures and what waiting can cost you: https://mcedge.tv/39s6op