Home prices have been rising and rising at a historic rate. It’s been very interesting to watch at a time when employment has been low and people have faced some financial troubles. Despite all of this, home values have continued to rise.
If you saw the same thing happen back in 2007-2008, you may be worried that prices are in a bubble. If it pops, are we going to see the same crash that we saw back then when prices suddenly plummeted and a lot of people ended up underwater on their mortgages?
Signs that are both good and bad
It is hard to tell. The overall consensus among many is that this isn’t a bubble. One economist in Forbes noted that there were good and bad signs all over the market.
For one thing, the fundamental qualities of the market are good. That is to say, values are high because the demand is high and the supply remains low. That’s not the type of bubble that suddenly pops. Supply and demand have always been core elements to consider and they are functioning as they should.
On the other side, though, he did warn of dropping prices if they peak quickly and at historic rates. Will that mean it’s the same as 2008? Certainly not. Mistakes made then are largely not being made now. But it’s also understandable that the market could correct itself to some degree. Although, even if it does, it could just be that the increase flattens out, not that values actually fall as they did then.
Help with your real estate purchase
This is not a simple time to buy a home. If you’re in the market, consider your legal options to make sure things go smoothly for you. Working with an experienced real estate attorney on your purchase can help you avoid major problems down the line.