Is the housing market a bubble, or is this the new normal?

 

It’s spring. That means it might be a good time to sell your house. The question to ask first is whether there is a housing bubble. There seems to be a frequent search on Google asking if there is a real estate bubble. It seems that there is semi-consensus that there isn’t a housing bubble currently. This is mainly because home prices are unlikely to fall significantly, and might even rise a bit slowly at a rate that outpaces inflation. 

What is also good is that lending standards are high, in part as a result of what happened in 2007. Banks don’t want to make the same mistakes again, and fraudulent lending is a thing of the past.

That is really good news for those who have a great credit score. The other piece of good news is that adjustable rate mortgages are less popular now, which means there is a better chance that the mortgages being approved are approved to people who will have equity in their homes rather than what happened in 2007 where mortgage lenders were allowing mortgages that amounted to no equity because the terms were so unrestrictive  it was all too easy to buy multiple houses. This caused the loan to then be worth more than the house, and we then had a huge problem arise.

Here are some charts on the current housing market and REITs and where it might lead us in the next few months.

 

If you are looking for a trading platform for REITs that serves both the technical trader and value investor, moomoo can help you while you might be deciding on your housing situation.

Below is REIT chart from moomoo app, as you can find out that Moving Average from all point of view, MA5, MA 10, MA30, trends all go up, it indicates that from short selling point of view, real estate is a buying market.

 

 

This can be proved from moomoo capital flow chart below, net cash flow is IN, which indicated more captial flow in real estate market, which could drives commodity, such as lumber price go up.

 

 

If you want to get more information about REIT, such as short selling, instituate holding etc. just click here for the link to moomoo.

Whatever you may decide regarding the housing market, keep in mind that if you are a bit perplexed you are probably in good company. It’s normal to feel perplexed sometimes, and what might help you the most is to seek reassurance that you will make the right decision, whatever that may be. 

 

Good luck with everything!