Real Estate Market Booming…Are we sitting on a Bubble?

The good news is the booming market we experienced in 2020 is rolling right into 2021 and so far, activity is quite strong, but are we sitting on a real estate bubble?

All indications point to a resounding “NO”. Unlike what we experienced in the mid 2000’s, today over 43% of homes in the United States are owned “free and clear” and almost 60% of all homes have at least 60% equity. A sharp rise in demand, spurred by record-low interest rates, continues to bolster homeowner equity. 

The limited housing supply we are currently experiencing is projected to continue well into 2021 and keep home price appreciation on this upward trajectory. According to the National Association of Realtors, Realtor.com, Freddie Mac and Fannie Mae, home price forecasts across the country are projected to range from 2.1% to 6% for 2021 and record low interest rates continue to fuel climbing real estate prices. 

Real estate markets are hyper localized and what is happening in your city or community can vary from what is happening a few short miles away, the next county over or half way across the country.

For more information about the Real Estate Market in general or to discuss your particular needs, please feel free to call Barbara Feller/Keller Williams
(954) 816-4900, or email [email protected]