Are we headed for another housing bubble? I say no and experts agree.
An article by David Stiff from CoreLogic, a business intelligence group, finds that a housing crash is nowhere in sight.
“Could we be headed for another housing market crash? The short answer is most likely no, because the current run-up in prices is being driven almost entirely by fundamentals – solid job growth boosting housing demand and limits on supply as new home construction slowly drifts upward from record-low levels – and not by easy credit and investor frenzy.”
I agree. The chances are unlikely of another recession occurring again soon as deep as the previous one. The markets are still lean without the oversupply and overpricing that typically occurs prior to major crashes. Yes, there will be ups and downs caused by other factors in the economy which may temporarily slow down real estate. Still, I do not foresee a major crash in real estate pricing anytime soon.
Moreover, Stiff believes the improvement in the housing market shows the economy is on strong footing.
“The current rebound in housing markets…is mostly a story of solid jobs gains driving the rebound in home sales and price appreciation.”
Yes, it’s always possible a crash will happen way off in the future. And when it does, Joffe Land Companies will be there to capitalize on it.