The question on everyone’s mind, buyers, sellers and observers of the real estate market, is when will the housing boom end? The answer, according to Forbes contributor, Bill Conerly, is when interest rates rise in 2022, perhaps the beginning of 2023. The boom produced frantic buying, but not a bubble. A bubble is not simply rising prices, but demand not justified by fundamental economic factors. The key to the buying boom has been low mortgage rates plus a shift in desired housing type. Newport has been a prime example of a boom resulting in buyers’ desire to shift from metropolitan areas such as New York City and Boston. Newport has seen a strong influx of buyers from these areas as well as from California.
To read the full Forbes article on how and when the boom will end, read, The End of the Housing Boom.