Headlines in the news have been focusing on inflation, an upcoming recession, and other gloomy predictions, but does this mean a housing bubble is just around the corner? Despite the doom and gloom in the news, experts aren’t seeing signs of an impending real estate bubble.
Stagflation Isn’t Happening
One of the signs of a bubble that some experts warn about is stagflation, which occurs when you have high inflation and a stagnant economy. This hasn’t happened within the real estate industry. Instead, the industry has been able to meet new challenges that keep business booming. Even with higher mortgage rates and other challenges, there are still plenty of interested home buyers and people looking to sell their home.
Other Bubble Factors
Other factors that normally point to a housing bubble, such as looser credit requirements and bad employment rates, aren’t happening. Credit requirements for mortgages are much stricter than they were before the 2008 housing bubble. Employment rates are also good, which helps prevent bubbles from occurring.
Demand vs. Supply
A close look at demand vs supply shows that demand is still high in the current market. This is good news for those who want to sell, although they might have a bit of trouble finding a place to buy. Real estate business tips for agents include helping sellers feel more confident about being able to purchase a home while selling theirs. Having a strong marketing plan is also important in order to reach those high numbers of buyers who are interested in purchasing a home, even with higher mortgage rates.
Looking for more real estate business tips? Visit Properties Online today to learn more about how to help your business succeed. We also offer products aimed at helping real estate agents market their business, including real estate websites.