The experts predict that we could see another year of massive home price appreciation. Home prices have already risen 20% from 2020, but the underlying cause of this increase, the housing shortage,
Are we in a Housing Bubble? 2021
Dated: October 9 2021
The perception is we're in an artificial bubble because house prices are going up.
But the reality is that house prices are up because of an inventory shortage and an increase in buyer demand due to record low interest rates
3 Reasons we're NOT in a bubble
1. Inventory: too many buyers, not enough sellers. simple supply & demand issues have caused house prices to soar with record low listings available.
2. More qualified buyers: Lending standards have become more strict - fewer adjustable rate & interest only mortgages. Most buyers have a larger down payment.
3. Homeowners have more sking in the game: Mortgage debt has stayed roughly the same, while homeowner equity has doubled.
See What's your home worth - https://bit.ly/SanDiegoHomesGuiide
See Reduced priced homes - https://bit.ly/SanDiegoReduced
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Allison James Estates & Homes
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