What would a bubble mean for house hunters? – Redlands Daily Facts


As if home prices in the US weren’t high enough, now they’re getting even more expensive.

Stubbornly low numbers of homes for sale continue to push prices higher and mortgage rates are rising faster than they have in decades. That has put the squeeze on home buyers and the real estate market.

Indeed, some researchers and economists believe the market has begun to show evidence of a housing bubble.

“Our evidence points to abnormal US housing market behavior for the first time since the boom of the early 2000s,” researchers at the Federal Reserve Bank of Dallas wrote in a recent blog post. “Reasons for concern are clear in certain economic indicators … which show signs that 2021 house prices appear increasingly out of step with fundamentals.”

So what does a potential bubble mean for homebuyers and sellers?

First-timers out

The persistent lack of supply in today’s market combined with surging demand is driving up prices and pushing more…

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