The U.S. housing market has gone from scorching to cooling within months as the momentum is also slowly shifting from a seller’s market to one more favorable to buyers.
But some might be unfamiliar with the most commonly used terms in the industry.
“The more you know before you jump into either buying or selling a house, the easier it will be,” said Kristina O’Donnell, a longtime realtor in the Philadelphia area.
Here’s what to know:
What is a housing bubble?
A housing bubble is a market condition in which prices rise beyond what most believe is reasonable or sustainable, according to Bankrate.com. A housing bubble, or a “real estate bubble” happens when housing prices spike rapidly, usually driven by an increase in demand, limited supply and some emotional buying, Bankrate said.
“While even two months ago rates above 7% may have seemed unthinkable, at the current pace, we can expect rates to surpass that level in the next three months,” George Ratiu, manager of economic research for Realtor.com, recently wrote.
What is a housing bubble?:Answering your questions amid housing market spike
THE FIX-IT LIST:Homebuyers are rejecting more offers than ever for ‘tiny’ issues. What’s a seller to do?
THE LONG HAUL:Housing market correction? Here’s what experts think is ahead for the real estate market
What does contingency mean?
A contingency is a clause in a purchase agreement that a specific action or requirement must be met for the contract to become legally binding,…
