{"id":1831,"date":"2021-07-01T12:10:20","date_gmt":"2021-07-01T12:10:20","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1831"},"modified":"2021-07-01T12:10:20","modified_gmt":"2021-07-01T12:10:20","slug":"housing-bubble-experts-say-no","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/housing-bubble-experts-say-no\/","title":{"rendered":"Are We in a Housing Bubble? Experts Say No."},"content":{"rendered":"
\"\"

Are We in a Housing Bubble? Experts Say No.<\/p><\/div>\n

The question of whether the real estate market is a bubble ready to pop seems to be dominating a lot of conversations \u2013 and everyone has an opinion. Yet, when it comes down to it, the opinions that carry the most weight are the ones based on experience and expertise.<\/p>\n

Here are four expert opinions from professionals and organizations that have devoted their careers to giving great advice to the housing industry.<\/p>\n

The Joint Center for Housing Studies<\/em>\u00a0in their\u00a0The State of the Nation\u2019s Housing 2021<\/a><\/em>\u00a0report:<\/p>\n

\u201c\u2026 conditions today are quite\u00a0different than in the early 2000s<\/strong>, particularly in terms of credit availability. The\u00a0current climb in house prices instead reflects strong demand amid tight supply<\/strong>, helped along by record-low interest rates.\u201d<\/em><\/p><\/blockquote>\n

Nathaniel Karp<\/a>, Chief U.S. Economist at\u00a0BBVA<\/em>:<\/p>\n

\u201cThe housing market is in line with fundamentals as interest rates are attractive and incomes are high due to fiscal stimulus, making debt servicing relatively affordable and allowing buyers to qualify for larger mortgages.\u00a0Underwriting standards are still strong, so there is little risk of a bubble developing<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

Bill McBride<\/a>\u00a0of\u00a0Calculated Risk<\/em>:<\/p>\n

\u201cIt\u2019s not clear at all to me that things are going to slow down significantly in the near future.\u00a0In 2005, I had a strong sense that the hot market would turn<\/strong>\u00a0and that, when it turned, things would get very ugly.\u00a0Today, I don\u2019t have that sense at al<\/strong>l, because all of the fundamentals are there. Demand will be high for a while, because Millennials need houses. Prices will keep rising for a while, because inventory is so low.\u201d<\/em><\/p><\/blockquote>\n

Mark Fleming<\/a>, Chief Economist at\u00a0First American<\/em>:<\/p>\n

\u201cLooking back at the bubble years, house prices exceeded house-buying power<\/strong>\u00a0in 2006 nationally, but\u00a0today house-buying power is nearly twice as high as the median sale price\u00a0<\/strong>nationally\u2026<\/em><\/p>\n

Many find it hard to believe, but housing is actually undervalued in most markets and\u00a0the gap between house-buying power and sale prices indicates there\u2019s room for further house price growth<\/strong>\u00a0in the months to come.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

All four strongly believe that we\u2019re not in a bubble and won\u2019t see crashing home values as we did in 2008. And\u00a0they\u2019re not alone<\/a>\u00a0\u2013\u00a0Goldman Sachs, JP Morgan, Morgan Stanley, and Merrill Lynch\u00a0<\/em>share the same opinion.<\/p>\n

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Here are four expert opinions from professionals and organizations that have devoted their careers to giving great advice to the housing industry. Finish Reading Are We in a Housing Bubble? Experts Say No.<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[15,10,18,9,49,295,42,40,63,20,12,320,48,47,19,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1831"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1831"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1831\/revisions"}],"predecessor-version":[{"id":1834,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1831\/revisions\/1834"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}