Another “Housing Bubble”? – Don’t Bet On It!
Are we or are we not in a housing bubble, and how exactly does this affect Danville and the surrounding areas? Experts can’t seem to agree on that one. According to Housingwire.com, a panel of esteemed housing experts at the ABS East 2013 conference in Miami on October 7th disagreed with Robert Shiller’s recent call that the U.S. is in the middle of another housing bubble.
Housing expert Laurie Goodman agrees that the current housing market can take increased interest rates without collapsing. Mark Fleming, chief economist of CoreLogic, said price appreciation is slowing down. Others argue that we’re in the middle of a housing boom, not a bubble–and that buyers can feel confident in purchasing a new home. According to Goodman, even with a 6% interest rate, housing should remain as affordable as it was in 2002 and 2003, which is good news for home buyers, who suffered from the collapsing market in 2006-2008. Moderator Howard Esaki asked for a show of hands from the 3500+ conference attendees: “Do you think there is a housing bubble”? Not a single hand went up
The Zwahlen Team is keeping our eyes and ears open for news on the housing market and the economy as changes take place. If you have questions on the ways this affects Danville residents, feel free to contact us! We’d love to talk to you.