Does this look like a bubble to you?

Is this another bubble?
As Realtors, this seems to be a favorite question from clients. And it makes good sense; everyone with a memory of 10 years ago wants to stay on their toes and not get burned again.
So, are we experiencing a bubble? And if so, is it about to pop? Refer to the graph above that depicts the last 15 months of real estate values, average and median, in the four county area of Sacramento, Placer, El Dorado and Yolo counties. Does it look like a bubble to you? Looks like a very gradual upward trend from here. This graph is telling a story of stability and stability feels good to most of us.
That is one way to look at it.
Here is another.
The upward movement shown in the graph below was much more exciting. Over the last 6 years, the median value rose a whopping 102% with the average values showing an also very hefty 87% increase in the four county area. Is that sustainable? Is it time to sell and run?
Not so fast.
Six years ago you will remember that we were in a deep trench, buried in foreclosures and short sales. Thankfully we climbed out of that pit and the market has slowly and steadily climbed upward.
This is not to dismiss concerns, history tends to repeat itself, and the business cycle remains the business cycle. But the good news comes from putting the two charts together and realizing that while we had a great run from the bottom, the most recent 15 months have been about a nice slow growth.
Hopefully we can hang out for a while at this nice, sustainable 5% or 6% growth for awhile.

Making a move, thinking of investing, or just curious

Moving up or down?
Getting in or getting out?
If you or anyone you know is in need of real estate services, your Miller Real Estate agent is standing by to take your call.  We work with buyers and sellers in all tax brackets and across the map in the four county area. 

Let's talk. 

Scott Miller, Broker
916-247-7411

Michael Miller, Broker
916-879-6006

Kristen Hansen, Broker Associate
916-591-1775

Kandace Mulvaney, Broker Associate
916-717-4828

Annie Dube, Broker Associate
916-705-6305

Kristen McDonell, Agent Associate
916-801-0132
 
Julianna Frisk, Agent Associate
916-606-8169

Marty Monroe, Agent Associate
916-482-5481

Alice Tomkins, Agent Associate
916-813-2595

Monica Shiel, Agent Associate
916-799-4883

Haley Nelson, Agent Associate
916-  799-3923

Elizabeth Ashe, Agent Associate
916-439-0756

Randy Ricci, Broker Associate
916-717-6100

Miller Real Estate
8300 Fair Oaks Blvd. #203
Carmichael CA 95608