Here’s the truth about this supposed “housing bubble.”

If you’ve been keeping up with the news, you’ve probably heard some discussion about whether or not the housing market is in a bubble. Today I’ll discuss what the experts are really saying about the supposed bubble.

Lawrence Yun, the chief economist for the National Association of Realtors, recently said this is not a housing bubble—we’re simply experiencing a severe lack of home inventory. Coupled with our low inventory is a high demand from buyers who are still able to get really good interest rates. Said Yun, “The sales for March would have been measurably higher, had there been more inventory. Days on market are swift, multiple offers are prevalent, and buyer confidence is rising.”

We’re not in a bubble: It’s simply a matter of low supply and high demand.

With low inventory and low interest rates inevitably come high home prices. Over the last year, prices have risen at a fast clip, and all of the major forecasters predict that home prices will continue to rise over the next year. However, they also predict that interest rates will begin to creep upward over the next year, so if you’ve been thinking about waiting to buy until home prices begin to decline, you may want to rethink that. If both home prices and interest rates are going to increase, any monthly mortgage payment you have will also go up.

Granted, this is a brief overview of where things are in the current market. If you’d like to learn more about the market or are thinking of buying or selling a home, feel free to reach out to me. I’d love to have that conversation with you.