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Here are four reasons why I don’t think our real estate market is a bubble.
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A lot of people have been asking me if our real estate market is in a bubble. Lindsay Carlile joined me recently to discuss this. It’s a loaded question, and there’s a lot that goes into it. Most people are still scarred from what happened back in 2008, but there are four main differences between that market and this one:
1. It’s harder to qualify for a loan. In the previous market bubble, it was incredibly easy to get a loan. Loan restrictions are much tighter these days, which protects the market.
2. There’s far less inventory.
We only have two weeks’ worth of inventory right now, which is the lowest we’ve seen in 20 years. Back in 2008, we had over eight months of inventory at the peak of the market.
"Loan restrictions are much tighter these days."
3. Banks learned. They learned that they need to work more with buyers and sellers.
4. Owners have much more equity in their homes.
If someone has increased equity in their home like the average homeowner today, they’re not going to walk away from it.
What does all this mean for buyers and sellers in our market? For buyers, don’t have any fear about a tanking market because I don’t think we’ll see a huge correction, and low interest rates make now a great time to buy. For home sellers, now is the perfect time to sell with low inventory and high demand.
If you have any questions for me about buying, selling, or the market in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
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