Today’s Housing Cycle

Only a year ago all the conversation was doom and gloom. Next we hear about the reviving housing market with talk of “green shoots”. Now it has become apparent that the real estate market is in a full upswing, with a rebound of 20% since the bottom of the downturn. However lately I have begun to hear talk of a housing bubble. Really, a housing bubble? Today’s market is driven by a shortage of supply, pent up demand and low interest rates. Not the abundant listings and lax lending standards as before. Lending standard remain stringent, and in the future the lack of easy money will act to temper any fever that may develop as prices rise. We tend to forget that real estate is cyclical. The market goes up and the market goes down. Right now the market is going up and should continue for several more years. Exactly how long is anybody’s guess.