Don't be fooled, We are in a Bubble!
Let's not repeat our mistakes, again.
Don't land up house rich and money poor.
The real estate market has corrected itself. Unfortunately it has done so a little too well.
Listings are "flying off the shelves". Not only are they selling quickly, they are selling for more than what people paid in (and their properties real value is).
Where we currently live we see homes go on the market and then not even a week later sell for $100,000 more than what they were valued at prior to the last Real Estate Bubble - you know the one that burst and contributed to the greatest recession since the Great Depression? Yeah that one ;-)
Please let us learn from the last bubble that burst. Please let us not repeat the same mistakes.
Why does this worry me enough to write about it?
We still have not recovered from the last recession. We are still climbing our way out. Still working to get the markets balanced. So this scares me as the real estate market is not in balance - it is the side of the teeter-totter that the bigger person is on... and it is teetering!
Here is another sign that the market is scary:
My father is looking to sell his house.
This wouldn't be happening if the current view of the real estate market was not scary to him - if he didn't think this upswing in the market was going to come plummeting down in the near future. (His best guess is in the next year or two.)
So between market knowledge, knowledge of how the economy works, and my dad's insight (yep totally personal opinion on that last one lol), I am warning AND asking all of you to PLEASE not repeat the mistakes we made during the years leading up to 2008. (The recession technically started during 2007, but we didn't start to see the effects until 2008.)
...that is all ;-)
Until next time,
Live. Laugh. Love. ♡