Housing Bubble

There is so much talk about the “housing bubble”. Most of the people talking about the bubble have no idea what they are talking about and have done little to no research into the topic. They seem to think that houses are like stocks…what a laugh. There are only a few things that a person HAS to have and housing is one of them, stocks aren’t even close to the top of the list.

There have been “experts” calling for a bust in the bubble for a few years now and so far they have been wrong. A burst would mean that nationwide there would be a drastic reduction in housing prices yet that almost never could happen. Heres why, real estate is a local product that is effected by local events more than national ones. Yes rising interest rates will slow many markets, but that will not crush the market. People still bought homes when the rates got around 20%.

Jobs effect the market so drasticly that even in these “boom” years there have been many towns that have been flat or even lost value over the last 5 years. There are some major metro areas that haven’t had a huge rise in values, while others that have had large gains also had huge job booms. Now I know it will be easy to dismiss one rambling from a real estate agent, but if you want some facts take a look at NAR’s research into the topic.

Keep an open mind and read the facts. Most people will be surprised at what is predicted for their local market. Some areas are in for a correction, most will fair much better.

Written by Ken Smith of the Suburban House Hunters Team