In this episode of “Russell Realty Minute Podcast,” Evan Russell, owner of the Russell Realty Group, discusses why we’re not in a housing bubble.
“The three reasons why we’re definitely not in a housing bubble is because the supply is limited, the demand is real and the homes have value.” – Evan Russell [02:02]
What You Will Learn:
[00:25] Three reasons why we’re not in a housing bubble.
Visit our website: https://www.therussellteam.com/
WE ARE NOT IN A HOUSING BUBBLE
Welcome to another episode of Russell realty minute with your host Evan Russell. Where Evan shares his real-world real estate experience with you, if you like what you hear, please be sure to give them a quick review right here in iTunes. Thank you for listening.
Ah the bubbles coming, ah the bubble’s coming, thanks voiceover guy, appreciate it. Welcome back, Russell Realty Minute. Three reasons why we’re definitely not in a housing bubble. Oh, it’s going to pop, it’s got to crack, it’s got to come down, it’s got to this, it’s got that. There’s no way that the real estate market can sustain this stance we’re at, these values that we’re at, the demand we’re at.
Here’s the three reasons why we’re definitely not in a housing bubble. Number one, the housing supply is extremely limited. The old supply and demand, right? There’s not many houses to buy, which drives the price of the ones for sale. There aren’t months of supply or months of inventory.
The amount of homes for sale in any given town is sometimes below five, below ten. Some towns there’s none, there’s no active inventory. So when a seller puts the house on the market, it’s going to get demand. So that brings in number two, this time, the housing demand is real. And why is it real? It’s real because the interest rates are low. The interest rates are low; people have a higher threshold of buying.
They’re realizing that the rents have gone up, renting is not the best option. They certainly want to get something they own, even in condos, even with association fees. It’s still cheaper than what some of these landlords are asking for rent. The rent is high; the interest rates are low. People would rather buy; the housing demand is real. And the third reason why this is not a bubble is the homes have plenty of equity.
We’re not going to be in a short sale situation because people can sell for the highest value. I tell people when I talk to them every day, your home has never been worth more than it is today. Why? Because the demand is high, the interest rates are low. If your home has never been worth more than this today, then you certainly aren’t going to be in a short sale or foreclosure situation because you’re going to be able to get equity out of your house. Make sense?
I know I’m really passionate about this one; I know you can hear it in my voice. But the three reasons why we’re definitely not in a housing bubble is because the supply is limited, the demand is real, and the homes have value, they have equity, they’re selling for a very high price. I hope you guys enjoyed Russell realty minute, three reasons why this isn’t a housing bubble, why we’re not in the housing bubble, why it’s not going to collapse.