With higher home prices that just keep rising and a competitive real estate market, the phrase “housing bubble” is one that has been getting tossed around a lot as of late. People are wondering and worrying if there will be another housing market crash, afraid to buy in the event that there is or propelled to sell to make the most of their money while they can.
Well, while no one can say for certain because we can’t predict the future, many real estate professionals are leaning on the side of no, we are not headed for another crash.
Check out this article from scottsdalerealtors.org that details why many believe this is not a concern to be had:
Financial blogger Logan Mohtashami is not the first and certainly won’t be the last to write about whether the U.S. is entering another housing bubble.
With more than 30 years of experience in the home lending business, he recently remarked “it is bullish for housing that year-over-year real home prices went negative last year” as shown on the three Case-Shiller indexes below.
“Despite what some want you to believe, this housing cycle is not in a bubble. Look at the difference in the metrics for the real bubble years of 2002-2005 compared to the current cycle years 2012-2020.” – Logan Mohtashami | HousingWire
Did the Valley mirror this cycle? See the Cromford Market Index graph shared by senior analyst Tina Tamboer at the Scottsdale REALTORS® Influencer Marketing panel.
“What pushed demand so high?,” Tamboer asked the sellout crowd. “Dumb loans and false demand — somebody buying the house who’s not going to live in it and not going to rent it. Now, we’re back to normal demand, but we have no houses for them to buy.”
Despite the market rollercoaster, Tamboer said homeowners who kept their homes through the Bubble and the Crash saw a 20-year average Annual Appreciation Rate of 4.5%. Between 2009 and 2019, that rate more than doubled to 9.3% as shown below.