We’re discussing the housing bubble again because people are still worried.

Every week, at least one person asks whether we’re in a real estate bubble. I think there’s been a bit of crying wolf when it comes to housing bubbles. I get about 300 emails per day, and much of it is chatter and worry about a bubble. Prices have been increasing continually, and that’s all some people can see. 

However, today we’re discussing it again because a few other things have happened: Interest rates have been rising, and there’s been talk of a recession. People may be getting the idea that we’re in a bubble because of all the conflicting information. We hear the market’s hot, and then it’s going to crash; we hear the market’s abysmal, and then it’s improving. Plenty of misinformation is coming from social media—everyone on Facebook thinks they’re an expert. 

 

“I think there’s been a bit of crying wolf when it comes to housing bubbles.”

 

Quite a bit of the misreporting out there is just stirring up emotions. People tend to make decisions faster in an emotional state, but that can lead to bad decisions. Your emotions play tricks on you, but a large part of my job is to keep people calm and take the emotions out of it. I’ve seen people lose their minds over the tiniest, irrelevant things in real estate. 

To figure out what’s truly going on, I always look back to the numbers. It sounds simple, and it is. It’s the old saying: Numbers don’t lie, but people do. I help people make logical, good decisions for themselves based on facts, numbers, and their timeline. We need to keep people grounded and get back to what’s important. 

In the Triad right now, demand is around 50 buyers for every seller for most price ranges. We don’t see demand decline much until we get to houses over $500,000, but even then, we see about 10 offers for every home. I don’t think it’s possible for the market to crash with that much demand. You should stop worrying about a bubble because our real estate market is doing well.

If you have any questions about our market or real estate in general, call or email me. I would love to help you.