Flip Tip Summary
According to Dr. Chris Thornberg, things are better than you may think, and may be for a while! Check out this great FlipNerd.com VIP Flip Tip to hear what Chris thinks about today’s market, and any concerns of a bubble.
Flip Tip Transcript:
Mike Hambright: Hey, it’s Mike Hambright from flipnerd.com and we have a quick VIP Flip Tip to share with you from Chris Thornberg [SP], who’s going to share a tip on where we are in today’s real estate market. And, just a little preview here, there’s no bubble coming.
Chris Thornberg: I didn’t say that. But, that’s a good question. You know, I do a lot of talks today and I always get this question, “Are we already in another real estate bubble?” And the answer is, no. It is true that we’ve seen prices come up a lot. But, a couple of things to keep in mind: A, the economy isn’t over building housing at this point in time, and credit still remains relatively tight. These are underlying fundamentals that suggest what we’re seeing in terms of price increase today is not a market that’s getting extended, but rather a market that’s still in the process of recovery.
If you look at long term levels of affordability, believe it or not, the market today in 2014 is still relatively affordable compared to what it was over a decade ago. With this in mind, this housing market still has legs for at least the next couple of years by our count. And my argument would be, while we don’t see a bubble today, there almost will certainly be a bubble in the future. But you know, this time, make sure you sell before it pops.
Mike Hambright: There you go. Thanks, Chris. Great advice.
Male Speaker: Thank you for joining us for another Flip Nerd Flip Tip.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.