Much Hoopla About the “Real Estate Bubble”and Search Trends
Apparently the general public is beginning to get concerned that the current trend in real estate will come to a dramatic end in the near future, leaving them holding an expensive property worth less than they paid.
I heard a radio show a couple weeks ago (I think it may have been NPR’s Market Place) discussing how far above the current rate of inflation the values of properties have climbed. And suddenly after scrambling for houses because of the low interest rates, people are beginning to worry. After months of making offers well above the asking price in many markets, people are beginning to rethink the wisdom of the “gold rush” mentality on the housing front. An apparent shortage in available housing for sale in comparison to the public demand caused a bit of nutty behavior in some markets. And it all leaves me asking — where are all the people coming from that are buying houses now? How can we possibly have a shortage when I see new developments whenever I take a short drive?
My real estate clients say that it’s because more people who were renters are now buying. That makes sense, but around here, even rentals are in high demand and low supply!
Anyway, the Internet trends company Hitwise.com says that the data on search trends and consumers’ online behavior indicates that not only the pundits are concerned. Your neighbors are worried too (those that still live in those houses). (more…)





