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Rainmaker
4,583,633
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

NO, NO, NO! It's economics 101... less supply, more demand, prices go up! Not sure why anyone brings up the bubble issues these days or for the past year, for that matter. The last time we had a bubble, we had plenty of supply to meet demand... home appreciation was speculative.

Mar 16, 2022 05:52 AM
Ambassador
4,087,228
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I wouldn't say it is a bubble at all, I don't see it bursting, haha.  It makes me laugh when the "experts" just throw something out there in order to act like they know what they are talking about.

Mar 16, 2022 05:59 AM
Rainmaker
542,409
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

No, supply & demand. The resale market supply has been effected by the lack of new construction during covid due to lack of supply & labor. Also many who would have put their houses on the market have not due to uncertainty of finding another property.

Mar 16, 2022 04:57 AM
Rainmaker
4,643,210
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

I don't think so. Supply and demand may be increasing prices at a more rapid pace in many areas, but demand may also be driven by artificially low mortgage rates.

The factors for a bubble do not exist at this time, but the times they could change as world unrest and disrespect for our current administration continues.

Mar 16, 2022 04:47 AM
Rainmaker
2,060,075
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

No , currently Supply and Demand is driving Value

By 2023 Prices will still be rising because our Dollars will continue to lose Purchasing Power !!

 

Mar 16, 2022 05:45 AM
Ambassador
5,835,090
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I wouldnt worry about that for a while.

Mar 16, 2022 05:28 AM
Rainmaker
826,636
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

No. Pent up demand vs. supply. We still have a few years before we catch up. 

Mar 16, 2022 06:12 AM
Ambassador
3,177,015
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

When I think of bubble the song Tiny Bubbles comes to my mind.  

As for a real estate bubble, I do not believe we are in a bubble. As others have stated, econ 101 - supply and demand.  In my Silicon Valley market - people have the money and are paying massive premiums for homes that need a lot of work. 

Mar 16, 2022 08:32 AM
Rainer
317,948
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

Nope, supply and demand, well qualified buyers.

Mar 16, 2022 06:20 AM
Rainmaker
2,701,705
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The 2006-2008 bubble was investor, banking and government exploitation for gain not normally intended. Within the shadows, many went for quick, and e-z returns and gave little or no regard to collateral damages. People were foreclosed upon, record evictions instituted, and major losses to insurance companies led to an emergency reset of our housing industry and all its components. None of those dynamics are in play at this time.  Instead, we have a willing buyer/seller demand and realization that Real Estate is and will always be a safe, long-term investment. What does concern is the retirement pensions that are sustained by current incomes and the fact that almost one third of America is retiring. That makes necessary funds weak and in demand. Add wild cards like covid, unemployment, global unrest, supply-chain mishaps and healthcare plus gross mismanagement and you have our correct State of the Union. I don't see a bubble but a reaping of what you sow. A reset of some sort is due

Mar 16, 2022 06:03 AM
Rainmaker
1,776,862
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Nope, mechanics of supply & demand in the works.

Mar 16, 2022 06:01 AM
Rainmaker
7,140,166
Roy Kelley
Retired - Gaithersburg, MD

No. Continued inflation will make building materials even more expensive and the cost of new homes will continue to go higher.

Mar 16, 2022 04:53 AM
Ambassador
2,614,183
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

No.  

 

  Supply and demand.

  There is not enough supply to meet demand. 

 

 And there is no way to fix it.

  With permitting costs, gasoline costs, inflation, six-month backlogs for garage doors, etc. there is no way to "build ourselves out" of this shortage.

 

 Where is the "Demand" coming from?

 

 Globalist investors are buying up entire subdivisions. 

 

Millions of "new Americans" (border crossers, Ukrainians, Afghans, et al) need a place to stay. 

 

   In many places, the motels and hotels are booked up months in advance; there are no apartments available.

 

 Florida, Arizona, Idaho and other conservative states are overwhelmed with "Tax Refugees" fleeing New York and California.

 

  Even Tallahassee, which had the blessing of thousands of available acres to build new subdivisions, is seeing a shortage.  The median price of $275K may seem low to some of you (Phoenix, Charlotte, Houston), but for Tallahassee it is a mind-numbing amount.

Mar 16, 2022 07:17 AM
Rainmaker
1,071,967
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

No...we are simply in a cycle and a correction in prices will be forth coming as part of that cycle

Mar 16, 2022 10:52 AM
Ambassador
2,823,297
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
St. George Utah Area Residential Sales Agent

Back in 2017, an AR member's brother sold his property up in SLC, Utah because they both thought the market would not be sustainable. If only he would have waited! Cha-ching!

Like other people have said...Supply & Demand in play.

Mar 16, 2022 09:17 AM
Rainmaker
1,007,428
Peter Mohylsky
PMI. Destin - Miramar Beach, FL

great answers all.  thanks for responding

Mar 16, 2022 06:59 AM
Rainmaker
5,410,563
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

No, and Nina has it perfectly said! 

Mar 16, 2022 06:32 AM
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4,782,865
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

No, not at all. It's all about supply and demand.

Mar 16, 2022 10:10 AM
Rainmaker
1,057,373
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The Bubble question keeps surfacing and the Question keeps busting and the market keeps being what it is.

Mar 16, 2022 01:36 PM
Rainmaker
1,440,331
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

No.  It's supply & demand.  Unless invitation homes decides to exit the rental business and flood the market with tens of thousands of homes, you're not going to see any type of a serious "bubble bursting" correction.  Nina Hollander, Broker is spot on.  In 2008 we had the "fog a mirror loans" (which are back) but there was ample supply and people were buying homes and selling them in six months because they'd gone up.  My friend was selling over 200 homes A WEEK back then.  It was insane.

California is experiencing an exodus of employers, but at controlled rates and from across the state.  We will eventually get more supply because of it, but it's far from the aerospace crash of the 90s when Boeing, Rocketdyne, Lockheed Martin and a couple other companies took what felt like 30% of the Ventura and Los Angeles County's jobs out of state overnight.  We had 12-18 month average market times then!

Mar 16, 2022 08:14 PM
Rainmaker
106,531
Scott Lawson
America's Home loans - Santa Rosa, Petaluma Mortgage Broker - Santa Rosa, CA
Mortgage Broker FHA, VA, refinance or purchase

Supply & Demand is one way of looking at it--here's another.

 

Compare current median home prices in your area vs. building a new one.

 

Acquire a buildable lot

Get permits

Hire architect

Pull in power from the utility

Pull in water or sink a well along with sewer/septic

build a 1700 sq ft (modest) home at cost per square in your area (about $400) here

That exercise puts doing it yourself vs. buying a "used" home at near double of our median home prices in my area. With the current inflation environment, this is going much higher in the near to intermediate term.

 

I use this exercise with clients that think we're going to have a housing market crash--it sobers them up real quick...

Mar 21, 2022 02:59 PM
Rainmaker
709,421
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

It is hard for me to honestly suggest someone buying an investment property at this time as I want one but would only buy a distressed sale. So I guess I do feel that prices are too high and just like an earthquake in California, a crash will eventually happen.

Mar 16, 2022 05:52 PM