Lately there have been a lot of headlines indicating that there is a new housing bubble forming due to housing prices increase….don’t believe them!
Although Phoenix, Detroit, and San Francisco are up more than 25% from their bottom, none of the cities listed above have reached their previous peaks levels. A few regions are also seeing a huge increase in housing demand, but this is partially due to low interest rates on mortgages and investors searching for opportunities.
The prices during the peak were referred to as a “bubble” and may not have been justified; but how can you say that we are in a bubble again when the levels are 27% lower than the last bubble?
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