Are We In a Housing Bubble? Experts Say No.

Divider Image

Are We in a Housing Bubble? Experts Say No. | MyKCM

The question of whether the real estate market is a bubble ready to pop seems to be dominating a lot of conversations – and everyone has an opinion. Yet, when it comes down to it, the opinions that carry the most weight are the ones based on experience and expertise.

Here are four expert opinions from professionals and organizations that have devoted their careers to giving great advice to the housing industry.

The Joint Center for Housing Studies in their The State of the Nation’s Housing 2021 report:

“… conditions today are quite different than in the early 2000s, particularly in terms of credit availability. The current climb in house prices instead reflects strong demand amid tight supply, helped along by record-low interest rates.”

Nathaniel Karp, Chief U.S. Economist at BBVA:

“The housing market is in line with fundamentals as interest rates are attractive and incomes are high due to fiscal stimulus, making debt servicing relatively affordable and allowing buyers to qualify for larger mortgages. Underwriting standards are still strong, so there is little risk of a bubble developing.”

Bill McBride of Calculated Risk:

“It’s not clear at all to me that things are going to slow down significantly in the near future. In 2005, I had a strong sense that the hot market would turn and that, when it turned, things would get very ugly. Today, I don’t have that sense at all, because all of the fundamentals are there. Demand will be high for a while, because Millennials need houses. Prices will keep rising for a while, because inventory is so low.”

Mark Fleming, Chief Economist at First American:

Looking back at the bubble years, house prices exceeded house-buying power in 2006 nationally, but today house-buying power is nearly twice as high as the median sale price nationally…

Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.”

Bottom Line

All four strongly believe that we’re not in a bubble and won’t see crashing home values as we did in 2008. And they’re not alone – Goldman Sachs, JP Morgan, Morgan Stanley, and Merrill Lynch share the same opinion.

Recent post

Divider Image

Slash Your Florida Home Insurance Costs: Insider Tips Revealed! Unlock Real Estate Savings with Regency: Master Insurance Tips for 2024!

Slash Your Florida Home Insurance Costs: Insider Tips Revealed! Unlock Real Estate Savings with Regency: Master Insurance Tips for 2024! This is... read more

Just Listed! 135 SW Monroe Cir N St. Petersburg, FL 33703

Blog Post... read more

Just Listed! 14821 Crooked Pond Ct Fort Myers, FL 33908

Blog Post... read more

SOLD! 2130 Southeast 5th Ct, Cape Coral, FL 33990 is Off the Market. #JustSold #DreamHome

SOLD! 2130 Southeast 5th Ct, Cape Coral, FL 33990 is Off the Market. #JustSold #DreamHome Click ⬇️ to get your new... read more

Hurricane Ian Aftermath: Uncovering Hidden Dangers of Mold – A Must-Watch Episode!

In this eye-opening episode, we dive deep into the aftermath of Hurricane Ian with special guest Brian Bland, President of... read more

Top 5 Epic Reasons to Move to Lee County, Florida: Your Sunny Slice of Paradise | Lee County Lifestyle Guide. 🌞

Discover why Lee County, Florida is the ultimate sun-kissed paradise! In this video, we'll unveil the top 5 epic reasons... read more

Just Listed! 8715 Pegasus Drive Lehigh Acres, FL 33971

Blog Post... read more

21350 Lancaster Run #1413 Estero, FL 33928

Blog Post... read more