MINT HILL, NC – Many have compared today’s housing market to the market of 2004 and 2005. However, it couldn’t be more different, according to some experts. The housing market has been incredibly hot, but is this just the start of a much longer housing boom?

The S&P CoreLogic Case-Shiller Home Price Index showed housing prices hitting another record in September 2021. With prices going up more than 10% year-over-year for ten months in a row, it’s easy to see how hot the housing market really is right now.

The comparison to 2004 and 2005 makes sense because that’s the last time it was this hot. During that time, home prices saw a 10% or more year-over-year price growth for 27 months in a row. Of course, right after that, the bubble burst.

Some experts think we are headed to a similar bubble bursting, but the reason for the boom in 2004 and 2005 wasn’t the same as right now. Back then, the boom was due to bad lending practices, while that’s not the case today.

Why the Market Might Just Stay Hot for about Ten Years

Some believe the market is just getting started and will continue to remain hot for a decade. These experts believe the housing market isn’t growing due to the same greedy lenders as 2004 and 2005. Does that mean it will continue to grow, just because the reason for the growth is different?

In the opinion of some, the reasons for the hot real estate market today are far more durable. Some believe it’s a demographic-related surge coupled with incredibly low mortgage rates and very low inventory. Of course, COVID-19 has certainly caused the market to shift quickly into such a very hot seller’s market.

What’s the Truth about the Real Estate Market?

There are many factors that point to the housing market being very hot and staying very hot. However, only a few self-appointed experts think it will last 10 years. Some think it will remain hot for a few more years before cooling off, while others think the bubble will burst sooner, rather than later.

What will happen with the real estate market depends on how things change in 2022. Rates will likely go up, but how high they go could be a large factor. Even cryptocurrency could end up having a positive or negative impact on the housing market.

There are plenty of unknown factors to consider before predicting this is just the start of a massive housing boom for the next ten years. The market will likely remain very hot throughout 2022, but what happens this year could set the tone for the next several years.

I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me.  I will help you make the right move! Anna Granger (704) 650-5707 | annagrangerhomes@gmail.com | www.1stchoicepropertiesinc.com