Real Estate News and Commentary

August 20, 2025August 20, 2025

Is Another Real Estate Bubble on the Horizon

With home prices hitting record highs in many markets, it’s no surprise that “real estate bubble” talk is making the rounds again. But is today’s market truly on the brink of a collapse like we saw in 2008? Although the answer is likely to be “no,” there is some nuanced data to consider.

Is Another Real Estate Bubble on the Horizon

Is There Another Real Estate Bubble on the Horizon?

Unlike the crash of 2008, today’s lending environment is far more regulated. Buyers are generally more qualified, with stronger credit profiles and larger down payments. Inventory continues to be historically low, and demographic demand (highlighted by Millennials entering peak homebuying years) is keeping upward pressure on prices.

That said, increased interest rates over the past year have cooled affordability, causing pricing corrections in some overheated markets. While a nationwide crash seems unlikely in the near term, there are several regional markets that could see sharper declines, especially where prices have far outpaced income growth.

Real Estate Cycles

According to Ted Nicolais, there are defined cycles to the real estate market. Nicolais maps out the cycles as follows:

The first phase is the “recovery.” Home prices are at the bottom, and demand increases. Available real estate units decrease while economic activity increases.

The second phase is the “expansion.” Housing inventories dwindle, there is little is available to buy, and finding a rental becomes difficult. Until new/additional inventory is added, price growth accelerates. During a real estate boom, people are willing to pay escalating prices because of limited inventory, and the prospect of “future growth”

Phase three is “hyper supply.” When housing demand begins to be satisfied, inventories fist stabilizes and then swells. Price growth slows.

Phase four is the “recession.” Occupancy rates and home prices fall.

Things to consider:

Housing inventory is still below average.
Mortgage interest rates are already declining from recent highs. Some experts have talked about future Fed rate cuts.
The National Association of Realtors June Housing snapshot indicated a 2 percent median increase in home prices.

The Bottom Line

It’s true, the housing market does feel different than it has over the last few years. But it’s unlikely that we are headed for a full blown bubble bust like we saw in 2008. And given the indicators, housing will continue to cycle through the expansion phase in the near future.

Housing has been in the midst of a market adjustment from the extremes of recent years, which is not a full-blown bubble burst. For buyers, this could mean more negotiating room. For sellers, pricing strategy will be key in the months ahead. Staying informed and working with an experienced agent can help you navigate whatever comes next.

What’s your home worth?

By Dan Krell

Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

August 1, 2025August 1, 2025

Rent or Buy Which Is Right for You?

The housing market has shifted, and the classic Rent vs. Buy debate is just as polemic today as it has been in recent years. For many, elevated interest rates and strong home prices makes renting seem cheaper than buying on a month-to-month comparison. However, a long term comparison tells another story. So let’s dive into Rent or Buy Which Is Right for You…

Renting

Renting continues to offer flexibility and fewer responsibilities. Monthly rent could be several hundred dollars less than a comparable mortgage payment at any specific time.

Pros of Renting:

Lower upfront costs (no down payment, closing fees)
Flexibility to move without selling
No maintenance or property taxes

Cons of Renting:

No equity or ownership: your payments build your landlord’s wealth, not yours
Rent increases: in recent times rising 4–8% annually
No Deductions or long-term financial gains

Buying

It’s not a secret that the cost of buying a home has risen. However, even with rising costs, homeownership offers long-term financial stability and wealth-building that renting cannot match.

Pros of Buying:

Builds equity: every payment adds to your net worth
Fixed mortgage payments: protection from rising rents
Potential appreciation: Although, markets vary, homes have gained about 40% over the past decade.
Deduction: Deduction on mortgage interest and possibly other costs (consult your tax preparer).

Cons of Buying:

Higher upfront costs (down payment, closing costs)
Responsibility for repairs, maintenance, and taxes
Less flexibility if you need to relocate

The Long-Term View

While renting may make financial sense in the here and now, it’s inherently short-term thinking. Renters face annual increases and no return on their monthly payments. In contrast, homeowners benefit from predictable mortgage payments (usually a fixed amount with a fixed rate mortgage) and the opportunity to build equity over time. As rents continue to rise, the long-term gap between renting and owning grows wider, often making ownership the stronger financial investment over 5 to 10 years.

Is Buying for Everyone?

Buying a home is not for everyone. Buying a home is a major commitment. If you plan to move within a couple of years, have unstable income, or don’t want to handle maintenance, renting may be the better choice. The key is aligning your housing choice with your lifestyle and financial goals.

The Bottom Line

Renting may be cheaper in 2025, but it’s a short-term solution. Over the long run, homeownership remains one of the strongest paths to building wealth and stability.

If you’re on the fence, it’s worth running a custom rent vs. buy analysis with your real estate agent to see where you stand. You may be closer to owning a home than you think.

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By Dan Krell
Copyright © 2025

July 18, 2025July 18, 2025

Market Slowing Down – What this means

Is the Housing Market Slowing Down? What That Means for You

The red flags are waving and there’s whispers of on the streets: the housing market may be cooling. After years of dizzying climbs, bidding wars, and sight-unseen offers, the pace is finally easing. But is this truly a slowdown, a healthy reset, or just a pause?

Signs of a Changing Housing Market

In many parts of the country, homes are taking longer to sell. Days on market are ticking up, price cuts are becoming more common, and buyers, once frantic, are now cautious, weighing rising mortgage costs against the fear of overpaying.

But it’s important to see this in context. After the frenzied, almost feverish market of the past few years, what we’re witnessing might simply be a return to normal. A market slowing down, where buyers can pause to breathe, sellers may need to be realistic, and negotiation, once a lost art, becomes relevant again.

What This Means for Buyers

If you’re a buyer who’s been sidelined by steep prices and stiff competition, this shift could finally open the door. You may see fewer bidding wars and more opportunities to inspect, deliberate, and perhaps even negotiate on price or repairs. Still, with rates holding steady at higher levels, smart budgeting remains crucial.

What This Means for Sellers

For sellers, it’s a gentle reminder that strategy matters. Pricing your home based on hopeful headlines from last year may lead to longer waits and inevitable reductions. The silver lining? Serious buyers are still out there. Homes that show well and are priced right continue to move, just perhaps not in a weekend.

A Balanced Perspective

Markets evolve and are cyclical. What matters most is having a plan tailored to today’s conditions, not last year’s headlines. Whether buying or selling, working with an agent who understands these subtle shifts can make all the difference, helping you navigate this nuanced new landscape with confidence.

Thinking of making a move? Have a meaningful conversation with your agent about your local market, and what this “slowdown” really means for you.

By Dan Krell
Copyright © 2025

What’s your home worth?

July 11, 2025July 11, 2025

The Wrong and Right Ways to Value a Home

Stop Guessing: The Wrong & Right Ways to Value a Home

When buying or selling a home, knowing the actual value is critical. Yet so many people, buyers and sellers alike, lean on quick rules of thumb or “word on the street” ideas that can be wildly off base.

Let’s break down the most common mistakes people make when trying to figure out a home’s value, and what actually works.

Wrong and right ways to value a home: Common Mistakes Buyers & Sellers Make When Valuing a Home

Mistake #1. Trusting online estimates from portals

It’s tempting to check a website, see a dollar figure pop up, and take it as gospel. But online estimates are based on broad algorithms. They’ve never walked through your home, smelled fresh paint, or noticed the outdated HVAC. The real estate portal might be $20,000 or $50,000 off (sometimes more). These tools are helpful for getting a ballpark, but they’re rarely accurate enough to make big financial decisions.

Mistake #2. Taking a neighbor’s word for it

We all know someone who claims, “My house down the street sold for $650,000!” But did it actually close at that? Was there a huge seller concession? Did it include extra acreage or high-end upgrades? Relying on neighborhood chatter is a fast way to misjudge your own situation.

Mistake #3. Looking at active listings instead of sold homes

An active listing shows what a seller hopes to get, not necessarily what the market will pay. You need to look at recent sales, because that’s the only place where money truly changed hands.

Mistake #4. Using the tax assessment

Your county’s assessed value is mainly used to calculate property taxes. It may have been updated years ago or rely on broad mass appraisals. It’s almost never aligned with today’s true market value.

Mistake #5. Doing simple “price per square foot” math

This is one of the most common mistakes, and one of the most misleading. People will say, “Homes around here sell for $250 a square foot, so mine should be worth $500,000.” But homes aren’t priced like bulk flooring.

Small homes usually have a higher per-foot cost because of the kitchens, bathrooms, and mechanical systems, which are the most expensive areas.
Larger homes often have a lower per-foot cost, even though they may cost much more overall.
Plus, upgrades, lot size, views, pools, floor plan efficiency, or even just charm can dramatically shift value in ways a price per foot misses.

While price per square foot can provide a rough benchmark, it’s never the whole story.

The Right Way: Use Comparable Sales (Comps)

If you really want to know what a home is worth, you look at comparable sales, or “comps.”

What are comps?

Recent sales of homes that are similar in size, age, condition, and location.

Why it matters:

These show what buyers have actually been willing to pay in your area, under real market conditions.

Adjusting for differences:

A good agent doesn’t just look at raw numbers. They’ll adjust for differences , like adding value for your new roof or subtracting for that home’s finished basement when yours is unfinished.

A thorough comparative market analysis (CMA) by an experienced local agent pulls all of this together, so you see a realistic range that reflects both the hard data and the nuances of your home’s appeal.

The Bottom Line

Pricing (or offering on) a home based on guesses, online calculators, neighbor rumors, tax records, or simple square-foot math can leave you badly misinformed. Whether you’re buying or selling, the smartest way to protect your money is to use real, recent comparable sales with expert adjustments.

What’s your home worth?

By Dan Krell
Copyright © 2025

July 4, 2025July 4, 2025

When Your Home Isn’t Selling

When Your Home Isn’t Selling: Should You Withdraw the Listing or Change Agents?

It can be frustrating and even disheartening when your home isn’t selling and sits on the market without meaningful offers. At some point, you may start to wonder: Is it time to pull the listing, or would switching agents make a difference?

Here’s how to navigate that decision with clarity and confidence.

Why your home isn’t selling

Before taking drastic steps, it helps to examine common reasons a home lingers unsold:

Pricing: Even in strong markets, an overpriced home will have trouble. Buyers today are savvy and have plenty of data at their fingertips. Buyers often know value better than we think.
Condition & Presentation: Today’s Buyers shop online first. Poor photos, clutter, or deferred maintenance can easily turn them off.
Market Dynamics: Interest rates, seasonal patterns, and local supply and demand all play a role AND affect buyer urgency
Marketing Reach: Not all agents/teams use customized strategies. Digital exposure, staging guidance, and proactive outreach to other agents matter.

Should you withdraw the listing?

If your circumstances have changed, perhaps you’re no longer ready to move, or you want to wait for a better market, withdrawing your MLS listing might make sense. Just keep in mind:

Some MLS systems track the days on market, so relisting later doesn’t always give you a fresh slate.
Buyers and agents may notice previous listings, so timing and presentation are key when you return to market.

Is it time to change agents?

Sometimes, a fresh perspective and renewed energy are exactly what’s needed. It may be time to consider other agents if:

You feel your listing was not aggressively marketed.
Communication was lacking, you weren’t getting honest feedback, clear updates, or strategic advice.
The agent or team did not deliver what was promised, whether that was availability, professional photography, staging help, open houses, or specific advertising commitments.
The agent or team was simply difficult to work with, adding stress to an already demanding process.
You suspect pricing guidance wasn’t in line with current local realities.
A new agent can often bring different tools, marketing channels, and negotiation strengths to reposition your home for a better result.

Bottom line

Whether you decide to withdraw your MLS listing and wait for a better time, or switch agents to get renewed energy, make sure your decision is driven by facts, not just frustration. A thoughtful strategy, informed by data and market insights, will put you in the best position to sell on your terms. A seasoned real estate professional can help you assess the data and chart the best next steps.

What are pricing trends in your neighborhood?

What’s your home worth?