Will the Real Estate Bubble Burst this 2021 Happen?
Thursday Apr 15th, 2021
Real estate bubble burst of recent occurrence was back in 2005-2006 in the USA. It lead to a memorable recession as companies tried to recover from all
The seller’s market seems to see no end according to the recent CREA statistics for the month of March 2021. The demand is still high although Spring saw an increase in the listed homes as well - but not enough to quell the hot market for home sellers.
Is there going to be a bubble burst? Most experts have different views. According to Justin Thouin (LowestRates.ca CEO), “We are expecting a modest correction,” she said. “But not a crash.” This statement is attributed to his positive outlook to rebound the immigration flux and lower interest rates for mortgages to protect homeowners from delinquency. He added he can see about a 5% decline in home prices this 2021.
However, some expert economists also say that at some point, the bubble would be burst. David Rosenberg (the chief economist and strategist at Rosenberg Research). He has called out the housing bubble in the USA back in 2005-2006. He is saying that current statistics have the same conditions as the statistics in the current market now.
It has mixed responses from some of the industry experts but it helps to take all different angles with a grain of salt.
The government can intervene with the strict mortgage stress test, stopping the blind bidding war, and increasing mortgage rates just so buyers can get their chance in getting their dream home.
We will have to see what happens. Contact JoAnn Visaretis to help you enter the hot seller's market right now.