As per a recent Redfin survey, 77% of homeowners think there is a bubble in their home area. Is this a sign the housing market will crash? Not necessarily.
The answer is that while the housing price appreciation we’re witnessing is reminiscent of a bubble, you’re unlikely to conclude the same if you dig into the fundamentals.
Like listed stocks on the stock market, the price of real estate can rise and fall sharply, as they are doing now, and then remain stable for years. The most likely consequence is that prices will level off.
The consensus from analysts is that while there may be some signs of a bubble, rather than crashing, the housing market will likely cool over the coming months.