San Diego Realtor Clayton Connolly shares some data indicating why he believes we are NOT heading towards a crash.

Are We in a Bubble?

A lot of people are talking about homes these days, and one of the concepts that gets kicked around is, is this real estate market going to crash? I'm real estate guru Clayton Connolly, and the answer that I'm getting from chief economists and the National Association of Real Estate is "no," it's not going to crash for a few reasons.

In 2006, for example, when the market started to decline, there were over four times as many homes on the market. So, as the demand decreased, there was a ton of supply which ultimately grew and was one of the factors causing the markets to crash then. Right now we have very few homes on the market, which is going to continue to keep it hot.

Another factor is, is that back in 2006, 2008, they were offering really bizarre unsound loans. These days we've hedged against that, and the loans that are available now require more down payments, better credit, and people are coming in with higher down payments, which makes home buyers and ownership much less risky.

Lastly, you know, if prices do sustain or even start to drop, there's an army of people who missed it on the way up that are ready to become homeowners because they realize rents are going up and there's a ton of value in owning a home. If you'd like to talk more about it, please reach out, direct message me, or give me a call and I'd love to share and be able to put a plan in place for you. Thanks.