As a real estate advisor here in Steamboat Springs, Colorado, I take my occupation very serious. In today’s market, candid real estate advise is even more critical than ever. Most of the information and quotes below are specific to real estate markets across the country. Even though national real estate market stats and trends are important to monitor, real estate is very local and making predictions on how the Steamboat Springs real estate market will be affected by national trends, while connected, is not always reliable.
Rising prices might result in a real estate bubble. But in some markets it might just result in a new plateau – a new bench mark of real estate values.
Taylor Marr, a lead economist at Redfin states, “A bubble really implies overvaluation driven by speculation,” Marr said. “Eventually that’s a house of cards that’s going to pop. You bet and over bet in the hope that prices will keep rising. But are people overpaying on housing? I would say so far the answer at least on a national level is no.” Marr said.
George Ratiu, a senior economists at realtor.com believes the market is “more stable” right now than it was in, say, 2008. “I don’t yet see a bubble,” he ultimately concluded.
In a recent Inman (real estate news) article ‘Palacios’ company John Burns Real Estate Consulting specifically states that current price appreciation is 13.8 percent for existing single family homes. But the report forecasts appreciation falling to 6 percent in 2022, 4.9 percent in 2023 and 4.1 percent in 2024.”
In summary, there’s no shortage of realtors, real estate economists, and everyone interested in real estate talking about a “REAL ESTATE BUBBLE.” These discussions are very timely and justifiable. The 2007/2008 real estate bubble that burst is still a disturbing memory to us all. However, these two periods of time are very different in many aspects. So much so that I feel the real estate market in Steamboat Springs will continue to go up and no such bubble will burst anytime soon. I do believe things might slow down a bit in 2021 . . . and I’m sure hoping for more inventory.
Credit Jim Dalrympie II from John Burns Real Estate for the graph and Matthew Gardner for the great video.