What’s happening right now in our market? Are we in a bubble? Find out with this quick update.
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One question that seems to be on everyone’s mind lately is, “Are we in a bubble?” In my opinion, no, I don’t believe we are.
A bubble, by definition, is what happens when favorable market conditions are nearing an abrupt end. So while our market is at a high point, this alone does not indicate a bubble.
In fact, real estate activity is projected to slow as we progress into 2019. This kind of gradual adjustment points to a market shift—not a bursting market bubble.
The current state of interest rates definitely supports this. While rates have been on an upward trend, going up three times in 2018 and set to rise again this year, they are still historically low.
In addition to this, other market statistics also reflect signs of good things to come. Homes are appreciating more slowly and taking longer to sell, and inventory is on the rise. Each of these developments indicate a slow shift in favor of buyers.
Overall, our market still holds amazing opportunities for buyers and sellers alike.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.