4 reasons why you shouldn't worry about another housing bubble

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Are We Heading Towards Another Housing Bubble?
A lot of buyers have been asking me if we are headed towards another housing bubble here in Atlanta. In short, the answer is NO, but let me explain why I say this.
 

1. Interest Rates: Interest rates are remaining low. Last time there was a bubble the rates were low, and then they got very high and became too expensive. This time, the rates have stayed low to help with a recovery.
2.  Lending Practices: Loans are now fully documented and lenders are being much more responsible in choosing who to lend their money to. If you're not qualified, then you're not going to get the loan.
3. Inventory / Number of Sales: We are not seeing a huge build up of inventory here in Atlanta. Actually, inventory is pretty low throughout the rest of the country. Massive build-ups of inventory are not happening because our sales and amount of inventory are right at pace with one another.
4. Price Increases: Prices are increasing, but they are not blowing through the roof. They are rising moderately in most parts of the country, especially here in Atlanta. In fact, some neighborhoods in Atlanta are experiencing far different markets than others. It really depends on what neighborhood you live in.

Hopefully this has erased any of your fears that we are heading towards another housing bubble. From what I can see and the data that I have combed over, we are not even close to a housing bubble. Even if we were close to one, we would be much more prepared for it than we were just a few years earlier.

If you have any further questions or would like assistance with Atlanta real estate, then please do not hesitate to contact me. I am always willing to lend a hand. You can reach me by phone or by email.