Are We In a Housing Bubble?
It’s no secret that today’s housing prices are at a record high and are continuing to spike every day. So naturally the question on everyone’s mind is “So are we in a bubble?”
A bubble is typically driven by a surge in asset prices that is fueled by irrational behavior and disconnected from fundamentals. By that measure, what is happening in housing today is the opposite of a bubble and should help drive the economy. While the impact of the Great Recession and the collapse of the housing market is still a fresh memory, the damage to the economy was from the subprime mortgage fiasco. There is little evidence today that lending standards are anywhere near those of 2004 through 2007.” – Elliott D. Pollack and Company, The Monday Morning Quarterback, June 7, 2021
What Does All This Mean For Buyers and Sellers Today?
Buyers, it is rough out there! Highly competitive and moving at a frenetic pace, the best advice is know what you want and come prepared to make an offer. Also come prepared for competition as multiple offers are the norm, and homes can go very quickly, often in a day!
Sellers, be prepared for the buyer frenzy. Get your home ready for showings but be prepared for a quick sale. This means know where you will be moving and line up your future home well ahead of listing.
This year is shaping up to be a good year for real estate in Phoenix with sellers still very much in the driver’s seat.
As always, if you are buying or selling, please work with a trusted real estate agent and loan officer. They can help you make the best real estate decision.
We are full-time, experienced Realtors working in Queen Creek and the surrounding areas. With decades of East Valley real estate experience under our belts, we are here to answer any questions you may have. Please do not hesitate to reach out to April Anderson at 480.272.1977.
We’re looking forward to hearing from you soon!
United Brokers Group
21321 E Ocotillo Rd E-111
Queen Creek, AZ 85142