We’ll likely see a market correction soon but not a bubble bursting.
Is the market bubble ready to burst? This is what everyone keeps asking me. The truth is, no one ever knows what’s going to happen. A few years before the pandemic, experts were saying we would see a correction soon because it happens about every seven years. Then the health crisis actually boosted the real estate market in 2020, and it’s still soaring in 2021, but it has to correct at some point. Things can’t continue like this forever.
However, if you’re looking to buy in Dane County, it’s a solid area and was during the recession too. People lost money on houses and values decreased just like everywhere, but much of that was caused by the financial crisis, not real estate changes. Our current market is completely different from what we saw before the 2008 crash.
“You need to focus on the future, not what’s happening at this exact moment.”
The other night I had a meeting with a financial advisor who said that if you aren’t already looking to sell because you need the money, you can ride the wave a bit; market changes likely won’t be an issue for you. Home prices rise and fall; I bought my house in 2004, and the price stayed flat for a bit, then the value improved a lot very quickly, then it dropped and stayed flat for a while again, and so on. It’ll change again, and I’m not moving anytime soon, so I’m not worried about it. I’ll probably end up seeing gains long term. You need to focus on the future, not what’s happening at this exact moment.
If you’re buying, that’s hard to come to terms with because you have to fork out a slew of cash initially, but if you’re buying a house and can afford the payments and aren’t overextending yourself, then you’ll likely be just fine. Unless you’re a person who bounces from house to house every few years, which can cause you some trouble.
If you have further questions about the market or anything else real estate-related, check out my website, or reach out to me via phone or email. I would love to be your real estate resource.