4 Reasons Why We Are NOT In A Housing Bubble

Over the past 2 years the real estate market has been peaking. Many were skeptical if it was another bubble, and if we are going to be repeating the market crash of 2008. Here are 4 reasons why we are NOT in a bubble and why.

#1 Housing supply: We are in an inventory shortage problem. Since 2008 the US has been at an estimated shortfall of 5 million homes. With low inventory, creates high demand, which causes prices to rise.

#2 Millennial homebuyers: Millennials are the largest demographic group after boomers, and guess who's buying homes right now....millennials!

#3 Low unemployment rate: During the great recession unemployment rates were sky high. Meaning a lot of people were loosing jobs and could no longer afford their mortgages. Currently the unemployment rate is nearing historic lows and wages are on the rise.

#4 Home equity: We no longer have a bubbling credit. Meaning the gap between household wealth and household debt is larger than it has ever been. Lending practices have majorly tightened up and there are no longer bad loans being thrown around to anyone and everyone who will sign up for them.