Housing Bubble In Bend? Should We Expect A Housing Bubble In 2013?
If you’ve checked out housing values across Bend in the last few weeks, it’s no surprise to anyone that Bend Oregon housing prices are up, and that’s actually a good thing, but to many economists in Bend and across the Country, it almost looks like we are heading towards another Real Estate bubble.
Housing Bubble Defined
What exactly is a housing bubble? This is something that’s happened to the Bend Real Estate market and across the United States more than once, over the last 30 years.
A housing bubble occurs when housing prices rise quickly, over a very short period of time, thanks to high demand and low supply for homes; the bubble bursts when demand begins to decrease and supply increases.
No Housing Bubble In 2013
Thanks to people like Lawrence Yun, the chief economist with the National Association of Realtors we know that the Bend Real Estate market and other markets across the United States are not headed for a Real Estate bubble because, the Government has been doing the right thing by gradually raising interest rates as housing prices rise.
According to Lawrence Yun, the next four to five years are actually expected to be growth years for the Real Estate market across the United States but, that doesn’t mean Bend Realtors or top listing agents will be shy of another bubble happening like what we saw back in 2005.
Prices Are Rising But…
Even though home prices are rising in the Bend Oregon Real Estate market and across many other markets like Portland, Seattle and San Francisco, home prices are still low in relation to rents and incomes across the United States.
This is good news, but also bad news in many ways because, with a low supply of homes in Bend, many homeowners are waiting to sell their homes until we reach the top of the market and if home values continue to rise at the current rate, it could be 2014 or beyond before many homeowners wait to sell their homes and take advantage of selling their homes at their best values possible.
To learn more about the Bend Oregon Real Estate market, or to view a list of available homes for sale, contact me at (541) 383-1426.