I was at a presentation by a Realtor discussing our local market. Like many, it is really hopping. Home values going up $15k every two weeks, limited inventory, offers with no contingencies going $50k over asking on first bid. The realtor discussed her thoughts on why-Covid making our rural market more desirable, etc.
I asked-if people are moving here they must be leaving somewhere. Supply and Demand what it is, that means the market is down somewhere. Where?
She claimed the market was up everywhere, but insisted she expected no imminent crash and we weren't in a bubble. How's that work?
Hmmm...interesting. I think asking a realtor whether we are in a bubble is like asking a barber if you need a haircut There is a little bias there
I believe this is a bubble. Our daughter and SIL just went through the process. They lost out on a house they "only" offered $5,000 over asking price. The house they eventually bought was $12,000 over asking, one day on the market. They sold their house $15,000 over asking, one day on the market, after considering an offer $30,000 over offer, but were concerned about the flaky buyer and realtor.
Their realtor was quite honest about the likelihood of a bubble in the near future. She said that their analyst at Century 21 said that it could occur in weeks or months. If they were comfortable losing $100,000 of equity and riding that out for several years, then make a strong offer.
The other thing that makes this feel like a bubble to me is that many people I have talked to have said crazy things lately. They want to buy now, before prices go up more, or before interest rates go up. So the bubble continues to grow, driven by an insane demand, reduced supply, and a growing optimism about the future.
We were considering upgrading from our condo to a SFH, but not at these prices. It's really getting crazy