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Are We Headed For Another Housing Bubble?
March 12, 2018 | Meagan Kang
Some people are worried that they may be paying too much for their homes. Here are my thoughts.
Are homes overpriced right now? If I buy now, am I paying too much for our home? Are we in another housing bubble?
I hear these kinds of questions all the time. The short answer is no, we are not in a housing bubble. Home values have still not caught up to where they were before the downturn in 2006 and 2007.
Right now, prices are starting to get back to that point, and they will probably level out in the next year or two, but they are nowhere near overpriced at this point.
In my opinion, prices are relative anyway.
In my opinion, prices are relative anyway. From 2008 to 2010, when we were in the downturn of the market, we used to hear from sellers quite a bit who were saying that they were upside-down in their house. My question to them was, “Are you planning on selling right now or in the near future? If not, then you’re fine. You can just ride it out.”
Some of those sellers who thought they were upside-down then are selling today and making a nice profit.
If you are planning to buy a house right now, we can educate our clients on being creative in the ways that they’re going to pay that house off. I’d rather see someone get a 15-year mortgage instead of a 30-year mortgage and pay less over the life of the loan, or else get the 30-year mortgage and do a bi-monthly payment plan to knock off seven or so years from the life of the loan.
If you have any questions or comments, feel free to reach out to us. We’d love to chat with you.