“So, are we in a real estate bubble?”
Three different clients asked me that question last week. They are ready to buy but are afraid that prices have increased by too much and they will be caught in a “bursting” market down the line. I carefully explain why I don’t think that will happen but I’m not a seer or crystal gazer and they should do their due diligence. I also tell them they should buy now.
In a recent article published by the National Association of Realtors, (yes, I see the conflict), the consensus was that there are data points that point to a few markets that will hold their value and even maintain their steady price increases. Fort Collins is #1.
“These are the Goldilocks of today’s housing market,” says Javier Vivas, manager of economic research for realtor.com. “Not too hot, and not too cold, these markets present the right balance of housing and economic conditions for buying and selling activity to evolve naturally.”
It makes sense. Here’s why.
- Positive price appreciation but not out-of-control.
- An ample supply of homes. Hmmm …
- Affordability. Um …
- New home construction is steady.
- Foreclosure rate. Low.
- Homes underwater. Low.
- Low unemployment rate.
We are also a smaller metro with adjacent towns that take up the housing demand so we don’t get crazy like the Boulder area. I may take issue with the ‘affordability and inventory’ assessments but apparently, we still have enough homes for sale that attract buyers but not enough to create multiple bidding wars that make us nervous. Yes, we expect offers over asking price but not to an extent that buyers are running scared.
Houses are coming on the market everyday now. Don’t hesitate. At least go look. I promise to head out to the car wash to get rid of those pesky dog hairs.