The U.S. housing market has continued to boom over the past year, raising suspicions that a real estate bubble is forming and that the bubble could burst at any time, as evidenced by recent popular Google searches.
CNBC reported that according to Google’s report last week, the number of searches for “when is the housing market going to collapse” jumped 2,450% last month, and “why is the housing market so hot?” The phrase “Why is the housing market so hot?” doubled in searches in just one week.
“How much more should I offer for a home than the opening bid this year?” also jumped 350 percent in the same week, and this question is one of the most telling indicators that the housing market may be in a bubble.
Among the various ways to find home prices, one of the most immediate and noteworthy is the statistics from real estate agency CoreLogic, which shows that U.S. home prices in February this year, up 10.4 percent from a year ago, the largest increase since 2006.
CoreLogic chief economist Frank Nothaft said, “There is a severe shortage of supply in the housing market; at the same time, mortgage rates at unprecedented lows are stirring up millennials and Gen Xers to buy homes.”
According to Realtor.com, there are only about half as many actively logged homes for sale as there were at this time last year, leading to increased competition to buy a home, and buyers are more likely to feel they are involved in a bidding war.
The issue of high bids on Google has left Nosefert a bit on the edge of his seat, saying, “I must admit, it’s worrying to hear that this is triggering my concern.”
According to data from Redfin, a real estate brokerage, 42 percent of objects sold for more than the list price at the start of April this year, 16 percentage points higher than at the same time last year.
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