Uncategorized June 22, 2017

Lynden, WA Real Estate Still NOT In a Housing Bubble

A few months back I did a blog on why Lynden, WA real estate is not in a bubble. However, with how quickly real estate is moving and how fast prices are rising on homes for sale in Lynden, WA there are people who are slightly worried that a repeat of 2007 is on the horizon. However, several industry experts have weighed in on this topic and are reassuring consumers that a housing bubble is not the current concern. Here is why:

1.) Lending standards are still not as lenient as they were. Yes, there are multiple programs and loans available for almost every kind of buyer looking to purchase Lynden, WA real estate. And yes, they have “loosened up” a bit in the past few years but they are nowhere as relaxed as they were a decade ago.

2.) Contractors are not overbuilding. In fact, new construction (also known as housing starts) is still not catching up with buyer demand. Inventory is at an all time low across the nation right now and Lynden, WA real estate is no exception. With so much economic growth in the Pacific Northwest, we have thousands moving to our region daily that are well employed and looking for homes to purchase. Until we get more Lynden, WA homes for sale or new construction on the market, the demand will still be high for probably another year or two to come. At least until new construction and housing supply can catch up with buyer demand.

3.) Housing prices are rising, yes, but they are nowhere near the pre-recession peak. Trulia recently stated that only 34.2% of homes have surpassed their height of the market value.

The housing bubble of last decade was a result of a high demand for homes due to people getting approved when they shouldn’t have been qualified. This caused for a surplus of new construction and prices that sky rocketed. The excess of housing flooding the market and serious lack of lending standards led to the crash that people are just now recovering from. With the stricter lending standards, low inventory and homes being priced based on market value, this shouldn’t be a concern for the immediate future. For more information on homes for sale in Lynden, WA feel free to give me a call at 360-410-0848.