When Will the Housing Bubble Burst?
We admit it. We’re wondering when this housing bubble will burst too. Some of us may have been there for the last ride. While others may be taking the recession ride for the first time. So, is 2019 the year of bracing for the burst?
We say no….well, probably not.
Although the housing market left many of us at the edge of our seat after flattening out in the second half of 2018, the housing market inventory is still too low to cause any big changes or a bubble burst in 2019. In fact, bidding wars are still expected to continue through the spring.
To put it in perspective, we took a look a few of the numbers at a national, state and local level. Here are a few examples of how they break down:
- Nationally: The number of single-family homes on the market at the end of 2018 was the second lowest on record since 1982. According to the National Association of Realtors, single-family home sales were down 3.5 percent in 2018, while the median transaction price rose 4.9 percent to $257,267.
- State: According to the Massachusetts Association of Realtors, the median sale price for single family homes increased 7.7% in February compared with the same month in 2018. Homes for sale dropped 9.5% for that same time period.
- Local: Here in the Boston market, the median asking price for a Boston home increased 44% in a five-year span, up to $695,000 in December 2018, according to the online real estate portal, Point2 Homes. That represents the sixth steepest net increase, falling behind only housing market giants like San Francisco and Seattle.
While we can’t predict the future, the bottom line is that although these trends aren’t sustainable in the long-term, they are likely to be the continued reality in 2019.