We all know someone with a story like this these days: You find the house of your dreams. It is in a good neighborhood with a good school district. You are preapproved for a mortgage, and you tell your realtor to put in an offer for the full asking price. The next day, your realtor tells you that there were five all-cash offers all over the asking price. So you lose out on the home. For some, this scenario has played out over and over again in the past 18 months.
From the outside, today’s housing market looks a lot like the one in 2006. Buyers are racing to make offers on existing homes. Developers are overpaying for vacant land, hoping to sell at a high enough price to cover their debt. People much, much more qualified than me — like Nobel Prize-winning economists and professors — are trying to figure out why housing prices are increasing so rapidly. And more importantly, they are trying to figure out what is coming next.
Is this a housing bubble? Is the market going to crash again like it did in 2008?
Continue Reading Will Housing Prices Ever Come Down? Comparing the Housing Bubble of the 2000s to Today