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When Will The Bubble Burst?

Jessica Evans

Jessica fell in love with D.C.’s unique neighborhoods while attending the University of Maryland...

Jessica fell in love with D.C.’s unique neighborhoods while attending the University of Maryland...

Jul 31 2 minutes read

Do “housing bubbles” even exist, and are we currently in one?


A common question I’ve been hearing is,  “Are we in a housing bubble and when is it going to burst?”

What is a housing bubble? While economists believe it can’t be accurately measured and defined, popularly, a housing bubble is defined by rapidly rising prices and frenzied buying. A bubble bursting would follow a period of rapidly declining prices. No one can accurately predict that because it's related to too many moving factors.

Demand has been high for a long time, interest rates have been low, millennials have been entering the marketplace, but supply has been declining since 2007. None of these are short-term changes, but they're all colliding at the same time, resulting in the current market conditions that we have.

Housing bubbles may not actually exist. Yes, prices will go down, but we don’t know when. They could continue to go up for some time. Interest rates will not stay low forever, so it's still a good time to buy.

If you have any questions or want to talk through your particular scenario, feel free to reach out.

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