Here’s why you don’t have to worry about a market crash yet.

“Is a real estate bubble about to burst?” Recently, we’ve received this question often, and it makes sense. Prices are rising dramatically, and people are worried. We don’t pretend to have a crystal ball, but the evidence says we aren’t heading for a market crash, and today we want to explain why. 

First, our market is nothing like it was in 2007 during the last crash. That market was driven by loose lending practices and shady financial speculation. Now, we have stricter regulations, and loans are much more stable. 

Instead, our market is driven by incredibly low inventory and high demand. There just isn’t much out there in most price ranges, and buyers are competing over what little supply there is. When you have a lot of buyers and not much to buy, prices will inevitably rise. Rising interest rates may soften this dynamic, but they won’t change it.

 

                           Contact The Lowry Team today! Call or text 513-586-6900

“Buyers have to compete for what little inventory there is.”

For our market to truly change, we’d need a lot more inventory, but it isn’t coming anytime soon. Home builders are struggling to build enough houses, and most new construction properties are too expensive for buyers because of rising material costs. Entry-level homes are feeling the housing shortage the most because we don’t have enough of them coming on to the market. 

Will sales slow over time? Most likely. We can’t keep setting records year after year. However, we don’t think we’re at the end just yet. We’ll likely see price growth this year, so if you’re looking to buy, the sooner you get in, the better. 

If you need a professional to help you navigate this housing market, please call or email us. We’d love to help!

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