Is There a Housing Bubble?

Glenn and Amber Schworm, founders of the Home Flipping Workshop, know much about housing bubbles and that the housing price increase results from a limited supply.

Real estate investors like them also know that a housing bubble is a temporary occurrence that could happen at any time, depending on the market’s circumstances.

Glenn’s recent new video titled, Is There a Housing Bubble? Ask an important question that will help you understand housing bubbles and what factors cause them to burst.

  • Economic Wealth
  • Lower Interest Rates
  • Access To Credit
  • These are factors that can create a housing bubble, but housing prices tend to increase over time even if they experience a temporary rise and fall.

    You can’t merely listen to rumors and expect to succeed, you must get training from the experts in order to get connected to a thriving network of real estate investors. 

    THE WAITING GAME

    People are hesitant to invest in real estate with talk about the housing bubble and the interest rate increase. Real estate investing is about purchasing products people want and need.

    People are still hesitant because of the last crash. They try to predict the market’s timing, which is hard to determine whether the market will increase or decrease.

    There is always an opportunity to make money in the real estate market. However, during a housing bubble, sellers consider this opportunity to cash in and get more money than they otherwise would. 

    Selling during a housing bubble holds both positive and unfavorable positions. The positive is the high selling price, and the negative is having to find new accommodations—a small cost for a significant exchange.

    REAL ESTATE RESET AND BASIC BUSINESS FUNDAMENTALS

    Real estate investors are familiar with a real estate reset. When credit gets tight, supply and demand are weak, and the construction sector gets rid of jobs ready for the next growth cycle. 

    Real estate has not kept up with demands and the opportunities to build durable, reasonably priced, diverse communities where everyone has a chance to succeed. 

    While there remain lots of opportunities in real estate, you may not know where to start. The Home Flipping Workshop offers fundamental principles to help build a solid foundation for your success.

  • Best Locations
  • Build A Team
  • Buy And Hold Benefits
  • Investing Strategies
  • Know The Market Cycles
  • Know Your Numbers
  • Leverage And Returns
  • Obstacles
  • Reserve Account
  • Technology
  • Following these fundamental principles will have you ready for a real estate reset. The cycle of bailouts, time, and corporate pivots will usher in the next growth cycle.

    THE SKYROCKETING EFFECT

    National housing prices have increased, with the housing demands being high and the housing supply being low. So as interest rates rise, fewer people can borrow.

    The increase in housing prices and borrowing has reduced lending habits, pushing real estate prices to an impossible level for medium income households. 

    Skyrocketing housing prices have made it harder for people to borrow from banks. Yet, it has opened the opportunity for the institutional buyer. These buyers do not need financial assistance because they can render all-cash offers. 

    Mortgage rates are rising due to the interest rates increase. At the same time, inflation is on the rise, causing price hikes and strongly influencing the real estate market.

    KEEPING UP WITH REAL ESTATE

    The conditions of the housing market and talks of a housing bubble can affect a home’s appreciation. A sudden increase in the value of a home can result from inflation.

    Inflation seems to keep up with real estate as it increases. So, holding on to real estate throughout inflation can effectively raise your capital and set you up for success. 

    A housing price increase directly affects household wealth, which affects the overall impact of inflation. Home appreciation usually increases in a seller’s market, while things could decrease in a buyer’s market.

    With real estate investing, evaluating the impact of appreciation and inflation is good. Inflation is known to be an important factor in real estate appreciation.

    The best way to keep up with what is going on in the real estate investing industry is to get connected today with our next virtual 3-day Home Flipping Workshop