Some frequently toss around the word “bubble” because of the housing market crash in 2007. It does not look like we will see a similar large drop in home prices. Industry standards have changed significantly. Kipping is confident in the market. “In my opinion, I don’t see it as a bubble that’s just going to pop and drastically change. I think it will slowly correct. Prices may come down, but interest rates will go back up. So now you’re paying more for that same house anyways.” This is a common opinion among economists. Low interest rates have kept prices high. As interest rates start to increase, housing prices should come down.
This may seem intimidating for first-time home buyers. Buyers may be concerned that others will outbid them for their dream home and snatch it away from beneath them. It is not all bad news, though. Interest rates remain low and there are many first-time home buyer programs to help. Kipping provided this piece of advice if you get approved for more than you were anticipating. “You don’t have to necessarily spend that much. To minimize your risks, stay within your price range. There are always options”
