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Aug. 8, 2022

Are We in a Housing Bubble?


Why you don’t need to worry about a housing bubble this year.

 

People have been asking me about whether we’re in a housing bubble more than any other real estate topic lately. That’s not for no reason; with home prices on the rise, many are worried that they’ll eventually come crashing down again. Some have even heard of a housing bubble on the news, prompting them to consider selling their houses now. That's why I'm addressing what’s truly happening in today’s market and what buyers and sellers need to know.

 

First, what does a housing bubble even mean? A bubble is essentially a period of artificial inflation where prices increase significantly, but when the market can no longer sustain those prices, they plummet. That’s not good for anyone, except perhaps the investors standing by to scoop up the many properties that inevitably go up for sale.

 

However, there’s a big difference between today’s market and the last recession. Last time, lenders gave out money to anyone who asked for it, whether or not they were qualified for loans. Nowadays, lending requirements are much stricter. Buyers need to provide all sorts of financial documents and information to get approved for a loan.

"Though increased rates have caused a shift, the market is still going strong."

 

Additionally, the demand for homes was different during the last recession. Speculators bought multiple properties thinking they would keep rising in value. However, then they realized that there weren’t buyers for their properties because everyone who needed a home had one. Then, interest rates began to change, and people began to lose their jobs. The supply of homes outweighed the demand for them.

 

In today’s market, demand exceeds supply. Builders are trying to keep up with that demand, but they can’t because of supply chain issues and population growth. Since 2010, the population has grown by 27 million people, but only around 5 million new homes have been built. Overall, the nation is around five million homes short of what is needed to create a more balanced market. 

 

Though increased rates have caused a shift, the market is still going strong. Home prices may appreciate a little slower than they have been, but they will continue to rise.

 

If you have any questions about what’s going on in the market or want an accurate estimate of your home’s value, give me a call or send me an email. I’d love to help you. 

Posted in Market Update
July 21, 2022

Homes Are Sitting "Longer" in the Charleston Market


Our Charleston, SC housing market is cooling down. What now?

 

What’s going on in our Charleston housing market? Today we’ll cover some critical stats we’ve received from Carolina One. They've consistently kept us up to date on the latest real estate technology, legal issues, etc. to help us understand where the market is heading. We’ll interpret the data and explain what it means for buyers and sellers.

 

Feel free to watch the full explanation or use these timestamps to browse specific topics at your leisure:

 

0:00 — Introduction

0:57 — Comparing the number of homes that went under contract 

1:42 — We sold more homes at the same time in 2021 

2:00 — The market is slightly slower than it was this time last year

3:14 — Inventory has been up since the beginning of the year

3:56 — What this means for buyers and sellers

4:44 — It’s still a strong market

5:01 — How we can help you get the best deal in today’s market

6:37 — Wrapping up 

 

If you need more help with your buying or selling plans, don’t hesitate to call or email my team or me. We’ll be happy to help!

Posted in Market Update
March 25, 2010

Fox Family Team

Posted in Things To Do