What is a housing bubble?
A housing bubble is caused by prices being up due to demand with little supply. So much competition drives the demand even more until the point where the demand stagnates at the same time supply increases. This causes a major drop in prices which causes the bubble to burst. Less demand + more supply = bubble bursting.
So….What does this mean for you? Should you sell?
Financial analysts and experts say yes! 2018 is also being considered a year where demand will reign. Here are the top 8 reasons why people will be buying in 2018:
- Home prices are appreciating and it’s a safe investment over the long term.
- Millennials need a home to raise their families.
- Rents are high giving property owners excellent ROI on rental properties.
- Flips of older properties continue to create amazing returns.
- Real property is less risky (unless you get over leveraged).
- The economy is steady or improving (although Trump’s letting his enemies cause too much friction).
- Foreigners including our neighbors in Canada are eager to own US property.
- Bankrupt buyers are over their 7 year prohibition from the last recession and they can buy again.
Moreover, forecasters are predicting home sales to increase almost 4% and median prices to increase 5.5% nationwide – given that Pinellas County is already experiencing an average price increase well above 6%, signs are pointing to this being the time to sell and get a real profit! Just remember….the bubble will eventually burst, so don’t wait too long!