As screwy as things in our economy is it any wonder when the inevitable housing bubble will happen. Housing today is being plagued with escalating new and used home prices, shortages of materials, low-interest rates, labor shortages and high demand for new construction.
Trying to get a handle on when the bubble will burst is a crapshoot at best.
If anyone tells you they can accurately predict when the housing market will crash, check to see what they’re selling. Attempting to figure out when the housing landscape will flatten is a guessing game, with so many moving pieces that it changes daily.
The Federal Reserve plans to keep the prime rate — the rate at which banks loan money to one another — low through 2022. When the prime rate is low, consumer interest rates remain low. That alone should be enough to keep home buyers interested. Add to that a U.S. economy predicted to grow by 6.8% in 2021 according to Fannie Mae’s Economic and Strategic Research Group forecast, and you continue to have a robust market for the near future.
There is nothing on the immediate horizon to indicate that housing prices will drop right away. In fact, Zillow Economic Research predicts that home values will end 2021 up 10.5% from current levels.
One thing most experts say is there’s little chance that the U.S. will experience a collapse of the same magnitude as the 2008 crash.
One of my favorite Real Estate Vloggers, Kristina Smallhorn, makes her own assessment of when we will see the housing bubble burst.
Watch this 8-minute video for her viewpoint on the subject:
To begin receiving my twice-weekly newsletter with offsite and modular construction news, views, polls and videos, simply subscribe to it in the form below.
Related Articles:
- Is Multifamily Housing The Next Lending Bubble?
- Are We Better Prepared For The Next Housing Downturn?
- Will The U.S. Housing Market Crash In 2021?
Gary Fleisher is Editor in Chief of Modular Home Source and Offsite Builder magazine. Email at [email protected]
