One of the most common questions we’ve gotten this year as Realtors is whether or not we are in a housing bubble.

It is important to take a look at what is happening in the national Real Estate and Lending market as well as our local market.

Are we in a housing bubble right now? And is my home going to lose value? Don’t be misinformed.

Many times people react based off emotion due to lack of information, and I’m here to help make sure that does not happen.

We are still noticing an accelerated rate of appreciation growth over time as the year continues.

“These outsized increases have raised concerns that a home price bubble is emerging. However, conditions today are quite different than they were in the early 2000s, particularly in terms of credit availability. The current climb in the house prices instead reflects a strong demand amid tight supply, and this has helped along by record low interest rates.”

The State of the Nation’s Housing 2021 at Harvard University

Today, we are nowhere near where we were in the last housing bubble in terms of credit availability. Homes are also more affordable today than they were during the last housing bubble.

All in all, we are not in a housing bubble as this is a supply and demand issue. says, “The main driver of the housing shortfall has been the longterm decline in construction of single family homes.”

Sam Khater, the Economic and Housing Research vice president and chief

Construction of single family homes has been below the average rate over the past 13 years since the 1970s. As the population grows, we don’t have enough homes to keep up, and that has spiked the rise in prices. Now, forecasters are saying that as interest rates and prices rise, we will start to see a slower rate of appreciation as the year moves forward.

Interested in how the national market has been affecting us in the Bay Area real estate market as well? Give our team a call, (408)-840-3852.

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You’ve got questions and we can’t wait to answer them.

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