Are We in a Housing Bubble Right Now in Tacoma?

September Market Update

Are we in a housing bubble right now and is my home going to lose value?

Don’t be misinformed!

Many times people react based off of emotion due to lack of information, and I am here to help make sure that does not happen.

We are still noticing an accelerating percentage of appreciation growth accumulate over time as the year continues.

The State of the Nation’s Housing 2021 at Harvard University says that, “These outsized increases have raised concerns that a home price bubble is emerging; however, conditions today are quite different than in the early 2000s, particularly in terms of credit availability. The current climb in the house prices instead reflect strong demand and amid tight supply, helped along by record-low interest rates.”

Today, we are nowhere near where we were in the last housing bubble in terms of credit availability. Homes are also more affordable today than they were during the last housing bubble. All in all, we are not in a housing bubble as this is a supply and demand issue.

Sam Khater, the Economic and Housing Research VP & Chief says, “The main driver of housing shortfall has been the long-term decline in the construction of single family homes.”

Single family completed housing has been below the average over the last 13 years consecutively since the 70s.

As the population grows we don’t have enough homes to keep up which has spiked the rise in prices.

Forecasters are saying as interest and prices rise we just start to slow the rate of appreciation as the year moves forward.

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