HILLSBOROUGH COUNTY, Fla. (WFLA) – It’s difficult to find anyone who doesn’t remember the financial crisis of 2007 and 2008. It led to the big burst of the real estate bubble which started in the early 2000’s.
“If the buyers start to get panicked and feel there’s not a lot to choose from or they’re going to lose out, that’s when a bubble can start to emerge,” said real estate agent Nancy Wood.
That’s what’s going on right now in the Bay area. Home inventory is low and prices are rising.
We looked at prices from March of 2016. The average listing price for a home in Hillsborough County was $374,000. But, on average, homes were sold for $218,000.
In a bubble, people would generally pay up.
“People start to pay more than really what their mind is telling them,” Wood said. “It defies numbers.”
Real estate agent Barbara Jordan tells 8 On Your Side conditions are right for a bubble, but there’s one major thing in the way.
“It is tough to get a mortgage,” Jordan said. “Your credit needs to be right. You debt ratio need to be right. So, we are not doing what we were doing to the meltdown. When if you could walk and talk you’d get a mortgage.”
And, these days, buyers are much more cautious. They’re also more educated about the market and that can help prevent a crisis we saw nearly a decade ago, experts said. ~