Should You Buy a Home During a Housing Bubble? Take Our Poll
When the pandemic struck in 2020, few imagined that the single-family housing market would have the surge we’ve seen over the past year. From home sales, homebuilding and price skyrocketing, the market has certainly seen an uptick in interest.
Take Our Poll: Is a Housing Bubble the Right Time To Buy?
Mortgage rates hit historic lows and asset purchases continue to boost the market further into quick success. In fact, home sales are booming so much that many Americans are leaving more expensive cities to capitalize on less expensive locations such as Cincinnati, Kansas City and Columbus. The National Association of Realtors stated from January to April 2021, home sales were up 20% compared to 2020.
However, supply is reaching an all-time low and high demand is leading prices to climb at a record pace. Current national home prices nearly doubled from a decade ago, when half of homes sold for a closing price of around $185,000 — it’s now hitting near $350,000, according to the National Association of Realtors. But, some question how long this market boom will last before things become scarce or a housing “bubble” occurs. A bubble happens when there is high anticipation or speculation that buyers will purchase homes with the intent to sell them quickly for a profit — which doesn’t seem to be happening quite yet.
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Last updated: July 5, 2021