Q & A Saturday – Are We in a Real Estate Bubble?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Are We in a Real Estate Bubble?

Real Estate Bubble - Massachusetts Real Estate

In this video Shaun discusses what is going on with our local real estate market and if we are in a bubble.

 

Some of the main points covered in this video are:

1)      What is going on the national level

2)      How does that compare to the markets in Eastern MA

3)      What indicators do we see saying yes or no?

 

After the great recession and the real estate market crash of last decade people are always wondering if it might happen again.  So are we in a real estate bubble?  Well nobody can say for sure.  In my opinion we are not in a full on bubble, however we are definitely well into the ramp up and one should be conscious of this when looking at buying a property.  Nationally I don’t think things are as far into the curve than we are in Massachusetts (and to a lesser extent in New Hampshire).  On that level you are seeing a slow-down in the basically unchecked rise in prices the last couple years.  Many metro areas have slowed down; however the major Boston Metro (which usually means all of Eastern MA and NH south of Manchester) was the only one I saw that had zero growth. 

The other major factor is that foreclosures are only starting to increase on the national level while MA is well entrench in a big rise.  Check out our last MA Foreclosure report showing the petitions, auctions and foreclosure deeds are all up significantly for 2015 over 2014.  Looking at petitions (the first step in a foreclosure) December 2015 was up over 118% from December 2014, it was also the highest total number filed in a month since 2012, they have climbed quarter over quarter the last 8 quarters and 9 of the last 10 as well.  This is all meant to show that foreclosure activity is rising and that is a BIG leading indicator of downward price pressure with the increase in inventory and generally lower prices they sell for.

 

Do you need to sell a house in Massachusetts or New Hampshire and want to get ahead of any bubble bursting?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our last MA Foreclosure report with the current month and full 2015 recap.

–          Our Foreclosure Trends Page updated whenever we have a new MA or NH report.

–          Our Market Trends Page updated several times a week with the towns and cities we work in.

–          Previous Video On The Boston Market.

–          Previous Video On Foreclosures.

–          If you want to sell a house that needs fixing in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Real Estate Bubble via LinkedIn Pulse)

 

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