Are We In a Real Estate Bubble?

Washingtonian Magazine published a great article this week called “Inside DC’s Pandemic-Fueled Real Estate Boom”. It does a great job of breaking down what’s happening in the market for single-family homes currently and sharing individual stories. However, if you’re in the market for a condo or coop in the city the market is a bit different.

I keep getting asked if we’re in a housing bubble. It’s possible, but based on the data that experts are sharing it doesn’t seem like it. This was my biggest takeaway from this article: “as quickly as prices are appreciating, they’re not rising anywhere near as fast as they would in a bubble: The median Washington home value increased by 8.7 percent in 2020. In 2005, leading up to the crash, it rocketed by nearly 22 percent.” We seem to be facing a severe shortage for the current demand.