Are we headed towards a crash? Here’s what you need to know.
Home prices are continuing to rise, rents are through the roof, and inventory is not to be found. Are we headed for a crash? One of the biggest questions I get is, “Are we in a housing bubble?” I get it; home prices are outrageously high, but what is a housing bubble anyway? Should we really be worried about one in our market? Let’s talk about that today.
You can watch the full message above or skip to each section using the timestamps provided:
0:00 — Introducing today’s topic
0:43 — What is a housing bubble anyway?
1:23 — What does affordability mean?
2:27 — Housing prices are driven by supply and demand
3:27 — Homes are less affordable, but not unaffordable
5:19 — It is still less expensive to purchase than rent
6:47 — The percent of income to buy a home is still low
8:09 — Rents have skyrocketed
9:38 — Wrapping up
In summary, buying a home is still more affordable than renting, and given the current data, we’re not expecting a price drop or more inventory. If you have any questions about today's topic or anything else real estate-related, feel free to call or email me.