Industry News

Regions buck real estate bubble theory

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So many buyers, so little inventory. It's a tale Rick Martin knows well. Martin, a Realtor/broker for Whalers Realty in Lahaina on the island of Maui, said some home prices in his area are 40 percent higher than they were at the same time last year. "We see very little inventory and many, many buyers wishing to purchase homes and condos on Maui. With so few sellers and so many want-to-be buyers, I don't see an end in sight anytime soon," he said. While Martin doesn't view the phenomenon as a short-lived market spike or bubble that is bound to burst, some real estate brokers in other regions have a different outlook. The "bubble" concept, it seems, is not so transparent. Marie Scott, a Realtor in San Bernardino, Calif., saw a bubble form in her area when interest rates came down and property costs rapidly inflated. "The first buyer willing to pay too much for a property begins the cycle," Scott said. "I pray it ends soon or at least becomes sensible. We have literally out-priced ...