IS THE REAL ESTATE HOUSING BUBBLE GOING TO BURST???
Google reported recently that the search question “When is the housing market going to crash?” spiked 2,450% in the past month.
From what I’ve read, the experts are saying NO to this very popular question.
It sounds like we’re going to continue with appreciation as mortgage rates start to creep back to more normal levels. A recent quote from a Goldman Sachs Research Note on Housing says, “Strong demand for housing looks sustainable. Even before the pandemic, demographic tailwinds and historically-low mortgage rates had pushed demand to high levels…consumer surveys indicate that household buying intentions are now the highest in 20 years…As a result, the model projects double-digit price gains both this year and next.”
And how is this different from before, when we did see a bubble burst?
From Morgan Stanley’s Thoughts on the Market Podcast this month, it was said that “Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”
WOW, so it sounds like prices are going to continue to go up. If you’re a home owner thinking about selling, I bet you’re wondering if you should hold off for a while longer. Now, that may not be a bad idea, but it also may not be the best choice for you. And no, I’m not just scything that because I want to list your house (although, of course, I do)! But, I’m saying this because you need to consider all the facts. The price of your future home is also increasing, interest rates are still at historic lows and you have equity now, that you can use for whatever your next chapter in life is.
It depends on what your current circumstances and desires are. And buyers out there, the argument for making a purchase now, is an easy one. You’re looking at incredibly low interest rates and the experts are saying the prices are only going up. Regarding the Martha’s Vineyard real estate market, here are the current market stats. The month of April was very similar to March in regard to the number of homes going under contract, closed transactions and median selling price. We’re continuing to see very low inventory, with just 5 single family homes under $1 million dollars currently available.
Between 1-2 million, there are 26 available. Due to this very low inventory, you want to make sure you are connected with an agent who is really working as a property scout for you. It is imperative that they network with other agents and reach out to prospective sellers so that they can help you find a home in this market. A
nd anyone thinking of selling, you really need to understand that while you can certainly do it on your own, you will never actually know if you’re getting the highest price unless you work with an agent to get the exposure for your home through the advertising and marketing we do.
Thank you so much for joining me for my monthly market update. If you would like to find out more about how I can represent your best interests, don’t hesitate to reach out.
Martha’s Vineyard Real Estate Market Update – May 2021
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👨🏻💻 Jen O’Hanlon
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