Is This Another Real Estate Bubble?

Are we headed for another real estate bubble? We believe we have the answer.

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I’ve been getting the question, “Are we in another real estate bubble?” a lot lately. The short answer is no, but here’s why.

The demand for housing in the current market, as opposed to the one 12 years ago, is much different. 12 years ago, the demand was created by the secondary mortgage market, which gave anyone and everyone a mortgage, even if they didn’t have a job or any way to pay it back.

The housing market is much different than it was 12 years ago.

These days, lending guidelines are a lot more strict. The demand for housing this time around is due to real demand from qualified buyers in the market. The biggest issue in this market is that there simply isn’t enough new inventory. This is making things challenging, especially for buyers.

If we see an increased supply of homes and more sellers decide they want to move, we might see an adjustment in the market. However, I don’t predict that happening in central Ohio for at least a few years, if at all. We’re adding a ton of new jobs and there are plenty of people here that are hungry for housing. It will be interesting to see what happens.

If you have any questions for me about the market or you’re interested in buying or selling a home, give me a call or send me an email. I would love to hear from you soon.