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Here’s Why You Don’t Need To Worry About Housing Bubbles Right Now!
Homeowners should be more concerned with how they can maximize profits on the sale of their homes than if we are in another housing bubble.
When the housing bubble suddenly burst at the end of 2007, the economy was thrown into crisis. In the Great Recession that followed, many people lost their jobs, savings, or homes. Now that we are seeing significant increases in housing prices and mortgage rates, there are some concerns that we are entering another housing bubble and will have to face the consequences when it eventually pops.
First, let us reassure you that you do not need to panic. While a report from the Federal Reserve Bank of Dallas did say that the fast-paced, upward trajectory of the current housing market showed some signs of a “brewing US housing bubble,” we are not officially in a housing bubble yet and there is no need to worry. Even though the Dallas Fed does define the current housing market as “abnormal,” the report clearly stated that there is no expectation that the fallout from this new possible housing bubble would be nearly as extreme as it was in 2007. Furthermore, market participants and regulators have learned from the Great Recession and now have better tools to provide early warnings that should allow them to anticipate and prevent another financial crisis.
Additionally, there is no indication that the housing market is going to crash or deflate in the near future. In fact, all signs suggest the prices and competition will continue to rise. The first reason is there is not enough housing to meet the demand. The housing supply in this country has dipped to historical lows, so there is a lot of competition for available properties. As more Millennials continue to enter the real estate market, it’s becoming even harder for the housing supply to meet the growing demand. And since the last housing crash, lending standards have gotten more strict, which means approved applicants are less likely to default on their home mortgages.
As a homeowner, you might be wondering how to best position yourself in this unusual real estate market. Current indicators show that housing prices are going to continue to rise due to high demand and delays in building new properties. With 80% of moves taking place between April and September, we have also just entered peak moving season with lots of interested buyers actively house hunting. You might be wondering if now is the time to list your home.
Ultimately, the answer to that question is up to you. Keep in mind that the housing market is unpredictable. While experts expect prices to continue to rise, there is no way to guarantee this or to tell how long this boom will last. Selling too soon or selling too late could cause you to lose out on possible profits from the sale of your home. Since the status of individual markets can also vary due to many factors, we encourage you to consult with a local real estate agent who can advise you on market conditions in your neighborhood.
But whether you choose to sell your home now to take advantage of rising home prices or will be biding your time, there are certain steps you can take to make your home more attractive to potential buyers. As a potential seller, you can maximize your profits from the sale of your home with simple and affordable renovations and some smart home staging tips. For example, “The Living Room” shared 5 simple tips that will add value to your home.
We love this clip because it provides a great guide for where you should and shouldn’t spend your money before listing your house. While minor renovations and cleaning up your property will make a big difference to potential homebuyers, you also want to avoid spending too much money on home renovation projects to ensure you get a good return on your investment. For more tips on sprucing up your home’s curb appeal, staging your living spaces well, and other little details to remember before showing your home, visit the Dabl Real Estate Hub!