Housing Bubble

A housing bubble refers to a situation in the housing market where housing prices become artificially inflated due to speculation and high demand, rather than actual demand based on the underlying economic and demographic factors such as population growth, job market, and affordability.

This can create a situation where housing prices rise far beyond what can be sustained by the underlying fundamentals of the housing market, leading to a sudden and sharp decline in prices, often resulting in a housing market crash.

U.S. existing home sales fall in January, but pace slowing

February 21, 2023 Mark Paul Cervantes Comments Off

U.S. existing home sales dropped to a more than 12-year low in January, but the pace of decline slowed, raising cautious optimism that the housing market slump could be close to reaching a bottom. Existing […]

Housing, Inflation Data On Tap as Debate Rages on Strength of Economy

February 21, 2023 Mark Paul Cervantes Comments Off

A bevy of economic reports awaits investors and economists in a holiday-shortened week as the government gives updates on a key inflation measure and fourth quarter gross domestic product as well as private readings on […]

Wall Street has purchased hundreds of thousands single-family homes since the Great Recession. Here’s what that means for rental prices

February 21, 2023 Mark Paul Cervantes Comments Off

Institutional investors may control 40% of U.S. single-family rental homes by 2030, according to MetLife Investment Management. And a group of Washington, D.C., lawmakers believe that Wall Street needs to back away from the market. […]

Three Predictions For Fix-And-Flip Real Estate Investments In 2023

February 21, 2023 Mark Paul Cervantes Comments Off

As the housing market shifts in 2023, real estate investors looking to fix and flip will face both challenges and opportunities. Because return on investment is never fully guaranteed, developing a clear plan to address […]

Prices for single-family homes are falling in these cities

February 20, 2023 Mark Paul Cervantes Comments Off

Home prices are going up across the country — in aggregate. Looking at individual markets, however, some are showing prices have fallen from a year ago. Single-family median home prices increased 4% in the fourth […]

Biden barely mentioned the deflated housing market. What’s next for renters, buyers and owners?

February 14, 2023 Mark Paul Cervantes Comments Off

Affordable housing advocates and homebuilders are pushing President Biden to take another crack at expanding affordable housing despite partisan divides in Congress. During Biden’s Tuesday night State of the Union address, the president announced a plan to […]

Here’s what to expect in the housing market this year

February 10, 2023 Mark Paul Cervantes Comments Off

Last year was a wild ride in the US housing market. Mortgage rates doubled and sales plummeted, triggering the longest month-to-month slump on record. A lot of would-be buyers and sellers watched from the sidelines. Throughout 2022, […]

New home sales rose in November, defying expectations

February 10, 2023 Mark Paul Cervantes Comments Off

New home sales were up in November from the month before, even as prices remained elevated and buyers faced some of the highest mortgage rates of the year. Sales of newly constructed homes rose 5.8% […]

Where will US home prices drop in 2023? And where will home prices get even more expensive?

February 9, 2023 Mark Paul Cervantes Comments Off

Home prices hit all-time highs in 2022, with the median price increasing by 50% from January 2020. High mortgage rates have slowed down the housing market considerably, with Redfin predicting that the median U.S. home price could […]

Real-estate investing in a down market: Strategies to use, how far home prices will fall, cities where prices are falling the most, which markets to invest in, and more

February 9, 2023 Mark Paul Cervantes Comments Off

Home prices are on the decline after their pandemic-era melt-up. That’s bad news for current real estate investors, and probably good news for prospective ones. Here’s how to navigate today’s shifting market. After their historic […]