It was not that long ago that the US was in a real estate bubble. Housing prices soared, and it was easy for people to get mortgages, so they bought homes at inflated values. When the bubble popped, the value of those homes dropped below what was owed, and a lot of people were underwater.
Over the last year-and-a-half, housing prices have once again begun to soar. A lot of people have seen their homes double or even triple in value. While this seems great from an investment standpoint, does it actually mean we’re in another bubble?
Experts do think this is a boom
While you can certainly find people who believe this is just a housing bubble that is going to pop, there is good news. Many experts believe it is a housing boom and that the increases in value are real. They do not think it’s going to repeat what happened before.
One of the main reasons that they think this is because there is a supply problem. There are more people who need to buy homes than homes that are on the market. The reason for the increase in value is just scarcity. This isn’t a bubble that can suddenly pop because you’re not going to instantly fix that scarcity and send the housing prices down again. Building projects cannot keep up with the demand, and, as long as that’s true, the values of homes are going to stay high.
If you think that the rising prices make it a good time to invest in real estate, it is crucial to follow the correct legal steps to capitalize on it.