Are We in a Housing Bubble?
The most recent Case-Shiller Home Price Index numbers for March 2022 revealed another 20%-plus jump in median home price year over year. This growth is on top of the red-hot year for housing in 2020 and now means the median home price has increased a staggering 38% over the last two years.
This isn't normal. For reference, the average median home price growth for the last 20 years was 5.5%. Even in the two years leading up to the Great Recession, which seems to be the most comparable time in recent history for such rapid home price growth, values only grew by 24%. There truly has never been a housing market this hot before.
This unsustainable growth in home prices is creating concern over a potential housing bubble. While we truly are in uncharted territory, the verdict on whether we're in a housing bubble isn't out just yet. But here's what the data tells us right now.
Source Fool.com
