Are We In Another Real Estate Bubble?

Blog posted originally 10/1/21

As a notary loan signing agent, I get this question on a regular basis. Are we in another real estate bubble? Or I hear people making investing plans banking on another crash. In the conversations, I have had with realtors, lenders, title, and escrow agents the answer to this question is often a resounding NO. No, we are not in a bubble or headed for a crash. I wanted to find more secure and reliable statistics and information about this, so I did what I do and dived into research. 

In “Yes, Real Estate Prices are Soaring and No It's Not a Bubble.” an article in Bloomberg Businessweek authored by Peter Coy, we get a great overview of this question and assumption that continues to pop up.

The bottom line, according to Coy, is that because stricter lending standards were set up after the 2006 crash, there are safeguards to prevent that from happening. Instead of putting the entire article in my words, I am going to link it for your review. It's worth the read.

For Fresno County, I wanted to find more specific information, as this is where I live and where my clients and potential homeowners I work with live. In a very well-written article on GV Wire, reporter David Taub writes that Fresno, Clovis, and Madera home prices continue to rise, but there are concerns that there will be changes to the market very soon in “What Experts Are Saying About Local Home Prices In 2022 and Beyond.”  A clear outline of the cause and demand for housing, a foreseen slowing in new builds, and house prices continuing to rise as the market remains saturated. See the article here.

Please take a minute to click the link above and read the article in full. From what I have read and what I have heard, there is no bubble. There is no bubble and there will not be a crash due to bad loan writing, because it's not happening anymore. Yes, interest rates are great right now for buyers with excellent credit, but they will go up in the coming months and years. 

Bottom line, if you are in the market for a new home, or equally interested in refinancing your home, the market is in a great place to explore those options further. When you do refinance or buy or sell your home, I am here to help facilitate your closings by providing top-notch Notary Public Loan Signing service, excellent customer service, and extensive knowledge of real estate documents- making your final document signings a breeze. 

I'm here to help you.

Jennifer Cooper

Notary Public- Loan Signing Agent

Central California