When it comes to real estate, are we in a bubble or a new market?

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If you are over 40 years old, you remember the first seven years of the 21st century. These were the peak years of shopping for the baby boom generation, which turned home ownership into a hectic housing boom that then became the global economic crisis of 2008. In the 30 years before this recession, there were about three more bubbles in the housing market, and then their inevitable burst into the housing fences followed.

In 2008, Connecticut’s housing crisis lasted ten years. There was low or no price increases, slow construction activity, and a depressed feeling that the overwhelming value of Connecticut homes had exceeded levels. Then the Covid-19 pandemic stopped many of the things people do every day, including thinking about our homes – new or refurbished.

But a funny thing happened last summer after we were all force-fed at home, which became our one place to work, study, eat, exercise and even communicate (via our computers). Overall, many of us have found that we love our homes, but we can improve them. So, once the bonds of blockage were loosened, there was a rush to redefine where we live.

Mortgage rates are still low, the number of homes for sale (also known as “inventory”) is the lowest since 1963, according to data Forbes, while personal savings are growing after a year when there is nowhere to spend income, and “Voila!” the next housing bubble happened. This means that prices for everything related to houses – construction, prices, equipment – are skyrocketing and often impossible to get right now.

Coldwell Banker CEO Robert Gorman fortunes that 40 percent of this new market is growing, 30 percent of homeowners are seeing the value of their home increase, and 30 percent believe that the home office boom fueled by the Covid-19 sequestration has created a unique fusion of needs and opportunities.

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