Skip to main content

What’s Happening in Our Market?

Here’s a summer real estate market update for the Triangle.

Are we in a housing bubble? I’ve heard this question so many times because we’ve had such a raging seller’s market. Based on the data that we have, I can confidently say that we’re not in a bubble. We’re seeing completely different circumstances compared to the last housing bubble.

Back in 2005, the loan lending standards were very loose, and there was a higher defaulting risk. That’s not a normal business climate, and the adjustments to lending practices since then have created a much more stable environment. In 2006, $376 billion in home loans was given to people with credit scores lower than 620. Today, that’s dropped to only $74 billion.

We’re not in a housing bubble.

Housing affordability is incredibly good these days, but it will continue to decrease because this seller’s market is likely going to continue, home prices and interest rates will increase, and wages haven’t caught up with prices.

Many Americans were given forbearance on their home mortgage payments due to the pandemic. At its peak, 30% of mortgage-holders were in forbearance. That number is now down to 3.5%. Most people have paid back what they owe, and most others have worked out a deal with their lender. We won’t see a big wave of foreclosures.

What people are mistaking as a market bubble is really just a strong seller’s market that is slowly trending toward becoming more balanced. Now’s a great time to take advantage of this market. If you’re looking to sell or have any other questions, please feel free to reach out to me. I’d love to hear from you and help you in any way that I can.

Leave a Reply

%d bloggers like this: