A vast majority of homeowners believe the housing market is in a bubble, but Redfin economists assure us that it is not a bubble in a new report…(Redfin)
- 77% of homeowners believe we are currently in a housing bubble. A year ago 64% of homeowners believed the current year would be better the year prior.
- 44% of real estate agents believe there’s a housing bubble in the market where they work.
Despite these concerns, the Redfin chief economist is confident this is not a bubble. Daryl Fairweather argues this is more of a ripple, “What we’re going through right now is closer to a ripple in the water than a bubble. Mortgage rates are already going up, which will likely stabilize demand and reduce the risk of a bubble that could burst.”
- However, Fairweather does argue that if growth continues unchecked, a bubble could form. “If this rate of price growth were to continue for another year, I would be worried about a bubble, too, but I predict home-price growth will slow significantly in 2022.”
REMINDER: Fairweather’s take is very similar to Mark Zandi’s argument earlier this month when asked if the current housing market was a bubble. “No. Not yet. But I say this with less confidence than I did a year ago, and if current trends continue for another year, I won’t be saying it at all.” (Washington Post)