Check out my Access Brokerage, Inc. blog post for more details and analysis: http://abiblog.abuyeragent.com/is-residential-real-estate-heading-for-another-bubble/
YES....for the next 2 years....don't see a repeat of 2007 crash...maybe some form of adjustment...different conditions altogether.
A price bubble is a speculative mania situation in which asset prices appear to be based on implausible or inconsistent views about the future.
How high can local home prices go? Who knows, but they will stop some day...and flatten out...probably after the hyper-inflation of printing money at the federal government level.
Credit-worthy borrowers - look at the credit scores for mortgage originations.
Housing supply - The supply of existing home sales on the market is as low as its ever been
U.S. consumer is in better shape than they’ve ever been coming out of a recession.
Recently, Google searches for “When is the housing market going to crash?” have spiked dramatically.
When Will the Housing Market Correct? In Canada, the price-to-income ratio is at a 40-year high. The average house price is seven times greater than the average household income. How is it in the United States? If you’re wondering when the housing market will correct, it may be time to cut your exposure to residential real estate.
America’s Housing Market Is Officially Over-Heating Everywhere. How Long Will It Last? “Prices can’t keep going up forever,” says Redfin’s Marr, “Even when the fundamentals are sustainable like they are now. Strong increases in mortgage rates, which are likely coming soon, will inevitably cool home appreciation and bring prices back in line with wages.”
So...what's the answer?
What did I say in my earlier podcasts...IT ALL DEPENDS!
Financial experts and real estate analysts often use a simple rule of thumb to decide if real estate is overvalued: the price-to-income ratio. Put simply, the average price of a house in your city should not exceed four times the average income. If it does, the property market is overvalued. Ordinary families may struggle to pay their mortgage if the ratio is too high. Home Price to Median Household Income Ratio (US)
5-2-2021 update: Is the US headed toward a new housing bubble?
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