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Housing Bubble?

Posted by Sami Thalji | Aug 17, 2021 | 0 Comments

Interesting article from NPR regarding a recent paper analyzing past housing bubbles and using that information to make predictions about the future of this housing market. The market is so hot rand prices are so high right now that you can't help but think prices will fall back down to earth. If prices fall to a point where equity is completely wiped out for the average homeowner then it will trigger a significant decline in the housing market, even if it is not quite to the level of the foreclosure crisis of the Great Recession. The paper is unsure if that is going to happen but does make an interesting point. Over the last 2 years the sale of new homes in the suburbs has sky rocketed due to remote working. Families can work further from job centers, don't have to commute, have more space, and greater value then they have realized in the housing market over the last 20 years. But, if big companies and policy makers start to rescind their remote working policies then it could trigger a collapse in the housing market. If these families are forced to start commuting long distances to work then means that the values of these homes was significantly overvalued. The question for the future is what will corporate America do? Changing work from home policies could trigger a collapse in housing and we know housing is what holds our economy up. What happens next? Your guess is as good as mine.  

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...

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