Barb Schlinker The Real Estate Voice

Top 3 Reasons Why we are NOT in a Housing BubbleSegment 1This real estate market is very robust, many people fear that it will come crashing down like it did in 2008.  Home Values Increased over 19.5% in just 1 year! (Rising)The AVERAGE sale price went up $39,000 in just 2 months!1. Houses supply is at record low levelsIn real estate, supply and demand are measured in “months’ supply of inventory,” which is based on the number of current homes for sale compared to the number of buyers in the market. The Colorado Springs Region has a 2 Week Supply of Homes – Sellers’ MarketBetween 2006 and 2008, the months’ supply of inventory increased from just over 5 months to 11 months. The months’ supply was over 7 months during that time, yet home values continued to rise.Remember, if supply is low     and demand is high, prices naturally increase.The 2008 Bubble:Interest rates were NOT lowInventory was NOT lowFinancing was EASY – that’s what drove the bubbleBecause Financing so EASY to get – the Buying Frenzy took holdT