In the real estate world, there’s almost always someone talking about a housing bubble. But what exactly is it? What causes it? And what happens after the bubble bursts?

Over the past year or so, it’s been impossible to escape real estate market doomsaying. It seems everyone is holding their breath in anticipation of a bursting bubble or housing crash. That, however, doesn’t seem as likely as a slow housing market correction.

The main hope for rising mortgage interest rates was that, in response, real estate prices would cool. Rising interest rates have been a point of concern for investors and average homebuyers alike – with housing more expensive than ever, even a marginal rate increase could mean thousands more paid in mortgage interest.

Over the past year, talk of a real estate bubble has been frequent and hotly debated. Are we in a bubble? Are we not? When will the market crash if it crashes at all?

The pandemic housing boom is over.

The 2020 real estate market has been surprising in more ways than one. No one could have predicted that the market would not only survive, but thrive during an unprecedented global pandemic. If we look back at predictions earlier in the year and even pre-pandemic, a market crash was certainly on all our minds.