Housing Bubble

The media seems to constantly hype fears of an impending “bubble.” The bursting of the proverbial housing bubble can cause market fears from time to time. What is the bubble and what does it have to do with your property purchase–and do you need to be concerned about it? Quite frankly, if you’re shopping for a home simply because you want to live in it for the long haul, a potential housing bubble really has little impact on your decision. After all, you have to live somewhere!

The Housing Bubble Analogy
The term “real estate bubble” or “housing bubble” was coined to describe certain areas where market values are steadily rising, like a bubble or balloon filling with air. Of course, like bubbles, when prices are over-inflated, they will eventually pop… or at least some of the air will go out of the bubble. This is the claim of the media, who continuously caution novice investors about sinking funds into a market that could potentially experience precipitous drops in value. Again, obtaining information on a consistent basis about markets, can help you determine your next investment moves.

It’s true that any area that is experiencing remarkable appreciation rates will eventually experience a slowing in growth, as the market becomes saturated. Eventually, property values will tend to level off, and may then remain constant or begin to fall. However, no one can tell what will happen in a market, or when it will happen. Market-savvy investors simply gather as much current information as is available and watch markets closely so they are prepared to take advantage of opportunities they find.

For the first time, this same information–formerly only available for market experts and housing lenders–can be yours for a nominal fee. For only $24.95, our HomeSmart Value Report will grant you access to the value of a specific piece of real estate. Additionally, our HomeSmart Report offers a comprehensive summary of the area risks associated with a property. This report can be yours in less than one minute, at a cost of only $6.95.

Updated: December 20, 2017 — 5:20 am
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