Will there be a housing bubble? Here’s why I don’t think so.
The real estate market is super hot right now. We’re getting prices for our sellers that I have never before seen. I recently worked with a couple who told me they wanted to walk away from their home sale with $300,000 in their pocket—we ended up getting them $360,000. We sold another home for $100,000 more than what the seller’s first Realtor told them they could get. The downside is that money is, unfortunately, leaving New York state as people move to Florida.
With that in mind, many people have been asking me if there’s going to be a real estate bubble. Here’s the deal: The signs of a bubble just aren’t there. Back in 2008 when the market crashed, a tremendous amount of investors came into the market with 100% financing and bought homes. Then the market started to turn; home values dropped, and there was no incentive for investors to stay in those homes.
That’s not happening in today’s market. In other markets around the country, we are seeing hedge fund buyers coming in to buy blocks of homes to rent, but in the Capital region, people are buying homes in which to live.
The market tends to move up very quickly, but it also moves down slowly. We likely have another 10 to 12 months of this busy, low-inventory market. Eventually, it will start to even out as more people put their homes on the market, and then the market will stabilize some. I also think we’ll see an acceleration of people leaving New York state; New York lost another seat in the House of Representatives by 89 people in the census because people are continuing to leave the state.
If you’re thinking about selling your home, now is an excellent time to do so. We have strategies to maximize our sellers’ returns, unlike other, inexperienced agents. I’ve seen some agents leave anywhere from $25,000 to $40,000 on the table. For buyers, even though you might have a long wait before you can get a home, considering our low interest rates, I think that now is a good time to buy, as well. We also have strategies to help buyers stay competitive in this red-hot market.
If you have questions about buying or selling a home or anything to do with real estate, don’t hesitate to reach out to me. In the meantime, enjoy this spring weather!