The market is shifting, but is there going to be a housing crash? Experts think not.
Lot’s of people are trying to compare this market to the housing market in 2006, before the crash. Although the current market seems similar to the market in 2006, it does not have the same cause.
In 2006, lenders were a lot more lenient on their lending practices and would approve underqualified buyers for loans that they would eventually not be able to afford. Due to this, more buyers were able to get qualified for loans and therefore there were more people trying to purchase homes.
Today, we do not see lenders giving away loans, instead we have a shortage of homes. With a shortage of homes, supply and demand are going to determine the prices. If there is a demand for homes, but a low supply, this is going to cause the homes to sell at higher prices because more people are competing for the same home.
Now will the bubble burst? Experts believe that this market is not going to crash anytime soon, if at all. They believe that home prices may go down slightly in the next few years, and bidding wars may cool off, but home prices are going to continue to stay high.
Daryl Fairweather, chief economist at Redfin explained, “There’s not really any room for there to be a bubble right now. It’s not like people have borrowed too much and it’s not like homes are overvalued.”
Robert Dietz, chief economist at the National Association of Home Builders, stated, “I don’t think buyers should be betting on any really significant price declines. If anything, as interest rates move higher, the cost of buying a home is going to go up.”
So what do you think? Is it the right time to buy a home in Las Vegas?
