Is There Another Housing Bubble In The Coming Weeks And Months?
The housing market has been booming since 2013. Home prices have been skyrocketing year after year. Many analysts and economists have been anticipating a housing market correction. However, the housing market has been booming with no signs of any correction. In general, the right-hand rule in basic economics 101 is what goes up normally comes down. The Dow Jones Industrial Average was nearing 30,000 prior to the coronavirus outbreak in February 2020. However, the Dow drops to 18,000 due to the pandemic. Today, one year after the COVID-19 pandemic broke in the United States, the Dow Jones Industrial Average broke 34,000. However, the housing market has not experienced any correction. Actually, it is the exact opposite and is booming more than ever. Many home buyers waiting on the sidelines have seen home prices skyrocket where many can no longer afford homes at this price range. The billion-dollar question is will there be another housing bubble in the near future?
Many Homeowners Are Afraid Of Large Housing Market Correction
Home prices have been just going up, and does not even want to make a slight correction. Never in history have the seller housing market been so strong. Most home sellers are selling homes at a premium over the list price. Is selling homes over the list price the new norm? The housing market forecast remains strong. Coupled with historic low mortgage rates, the exodus of city dwellers moving to the suburbs and rural areas, and companies offer remote job opportunities to their employees, the home purchase market is expected to remain strong for years to come.
Is There Another Housing Bubble Crash: Mortgage Agencies Cautious
Mortgage agencies such as HUD, VA, Fannie Mae, and Freddie Mac have lowered their loan to value on cash-out refinances. The Veterans Administration (VA) has lower its cash-out loan to value from 100% to 90% LTV. HUD has lower their 85% cash-out loan to value to 80% LTV. Fannie Mae and Freddie Mac have tightened their credit and DTI standards due to skyrocketing home values. All of these mortgage agencies are afraid of another housing crisis and/or a major housing market correction. In this article, we will discuss and cover whether we will have another housing bubble in the coming weeks and months.
Is There Another Housing Bubble Crash In The Near Future?
Home prices are skyrocketing year after year. This is a national crisis. Many homebuyers are being priced out from buying a home. Home prices are outpacing the national median income. Many homebuyers are being priced out of the housing market. Many would-be homebuyers are hoping for a market correction. Many experts and economists are predicting another housing bubble, worse than the 2008 financial crisis. Despite the coronavirus pandemic and high unemployment, the nation is seeing a major housing shortage. There is more demand for homes than inventory. This is coast to coast and not just limited to a certain region. Home prices are skyrocketing in all 50 states. More so in lower-taxed states with affordable housing than far-left liberal states with high taxes and high home prices.
States With Large Price Increases
Home prices are skyrocketing in all 50 states. However, Idaho leads the nation with the highest increase in home prices.
Look at the graph below: