12/10/2023 0 Comments Are we in housing bubble 2021![]() Our current neighbors didn’t like the traffic, but we were happy to agree on a price above the listing price! We had over 50 showings and multiple offers over three days. We were fortunate to list and sell our home in one weekend. But even then it took some luck as the for-sale-by-owner home happened to go on sale in our realtor’s neighborhood, enabling us to move quickly to view and write an offer! On the sale side it was just as crazy. Fortunately, we finally were able to agree on a purchase of a home. We made multiple offers on homes for sale over the last eight months only to be outbid by offers written on Day 1 of showings. This market is being driven by fundamentals that will likely prevent a repeat of the 2008 collapse in housing prices.įrom my personal experience, the buying process was long and frustrating. But current supply and demand trends are at least in part a product of longer-term market trends that are here to stay. ![]() It is possible the hot housing market of 2021 could cool down at any time. I have concluded that the basic economics of supply and demand are driving much of the pricing action – not speculation. I have a fresh, personal perspective on the topic as my family is now in the final stages of a home purchase and sale in the Cleveland area. This inevitably leads to the question: “Are we witnessing another housing bubble that will lead to a crash?” Fast forward to 2021 and our country is again experiencing rapidly rising home prices in most places. Unfortunately, we also remember the subsequent pop of that speculative bubble, which ultimately metastasized into the Great Financial Crisis of 2008-2009 that shook the very foundation of the global financial system. As most of us can remember, the astonishing home price acceleration in 20 was something to behold.
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