Real Estate Bubble 2013
Depending on who you talk to about the Atlanta Real Estate market, you might think that there is another real estate bubble. Is it the Real Estate bubble of 2013? Right now, looking at the data no. End of post….
If you’d like you can read how we were right, below!
The Jarvis Team doesn’t see this as a bubble. Atlanta never had the run up on prices that the other places did and the fall we experiences wasn’t a housing bubble as a result of inflated prices. The prices did go up artificially but not because of over demand, the price increased and fell due to the secondary loan market giving loans to home owners who were not financially able to support the homes they were qualified for.
That’s why after 5 years of short sales, Atlanta still is a leader in the nation for foreclosure and short sales. Luckily, delinquencies are down, in fact, let’s talk about the real estate bubble 2013 edition. For a bubble to occur, prices have to rise at a pace that exceed affordability for a long period of time – which is relative but a bubble is not 6 months, no that would be a “wave” – a bubble is longer run-up on prices with no foundation really to sustain itself. The reason real estate bubble is being mentioned now is due to the economy. The economy seems to be on a bubble of it’s own.
What you need to know about Real Estate Bubble 2013: Atlanta
Every year there is what I will call a “real estate wave” that’s where the home buyers start actually buying the inventory and it causes a short run on homes. Meaning that buyers are active and closing producing “comparable” home sales so that a few can sell their home for a slightly higher price. At the end of the year, everyone will look back and say, Atlanta increased by X% but during that time the increase is much higher during a smaller portion of the year. This wave “crests” and then falls to a slightly higher price and at the end of the year they equal that X%. The key for the seller is to sell when the wave is starting and the buyer right before or slightly after the wave.
Ultimately of course, history will tell us whether or not there was a real estate bubble in 2013.
Related Real Estate Resources: