1 Answers: Does anyone else see a mild bubble in the housing market right now?

Question

Housing has slowed down due to rising interest rates.

Increased rates make it harder for first time buyers to get into the market, and harder for existing owners to upgrade to new houses because they would jump from an old mortgage at a low rate to a new mortgage at a higher rate.

I don’t think we’re going to have a bubble like the 2008 collapse, but its possible that we’ll have a 10-20% dip in values and a slowdown in terms of the speed at which homes sell when they hit the market. It will definitely favor buyers more than the past 2-3 years, but most sellers will have more equity in their home than they did when they purchased, unless they bought at the top of the market.

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Anonymous 8 months 1 Answer 66 views 0

Answer ( 1 )

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    There is certainly a bubble brewing not just in the housing market but also in stocks too. There is too much money chasing far too few deals and this causes a hyper expensive market and something which is not based on real intrinsic value.

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