Through out the Tahoe Keys real estate industry, there are some professionals claiming that we are on the verge of another housing bubble due to home values rising too quickly. While it is understandable to be wary, our Tahoe Keys real estate market is not in a housing bubble.

Last decade we saw a roller coaster ride of prices. Truly, if someone looked at graphical data from 2000 to now, it would look like something from an amusement park. It also includes the price bubble and the crash, also known as the correction. Based on the analyzation of 100+ experts that were surveyed for the Price Expectation Survey, the normal appreciation from the late 80’s to the late 90’s was about 3.6%. If the housing bubble burst didn’t occur and we applied that same appreciation every year for the past 16 years, Tahoe Keys real estate prices would be much higher today than they currently are.

Home sales are strong and steady and refinancing is up thanks to a few factors. Part of this is due to millennials as they are driving the next generation of housing. With 1.2 million households forming nationally, there is a demand for more entry level homes which gives new construction the boost it needs. With such a strong demand and stricter guidelines to securing a loan, a housing bubble isn’t something to be currently concerned about. In fact, 2016 so far has had 5.5 million home sales, which is an increase of 200,000.

Buyers of Tahoe Keys homes for sale have been frustrated by low inventory and high prices as a result of the bidding wars but experts are saying that prices should level out a bit that more inventory is on the way. This would provide relief for those trying to get into a house as the rental market has become so expensive, it makes more sense to buy a Tahoe Keys home for sale. With such a high demand for housing, there is no reason for alarm as prices seem to be right in line with where they should be.

For more information on the current Tahoe Keys real estate market conditions, give me a call at 530-308-4331.