The Unique Housing Bubble Dynamics

Current dynamics of the housing market reveal a striking difference in buyer demographics, with the median age of first-time homebuyers now in their 50s. Historically, housing bubbles occur as prices rise, igniting a fear of missing out (FOMO) among prospective buyers, which leads to increased activity. However, the present scenario shows that skyrocketing prices have rendered homes unaffordable for many, effectively freezing the market despite historically high prices. Consequently, while prices are elevated to unprecedented levels, the volume of transactions resembles that of the 1990s when the population was significantly smaller.