It's clear that consumers are worried about the speed with which home values are rising. Many people fear that the speed of appreciation could lead to a fall in prices later this year.

In fact Google report shows that the search for "When will the real estate market crash?"  (increased by 2.450% last month, reinforcing that there is concern and a lack of understanding on the part of consumers of the reasons behind the increase in real estate prices and how solid this increase is.

In addition, Jim Dalrymple II of the Inman News observes:

"One of the most notable things that came out of Inman's conversations with the agents was that they all said they have talked to clients about whether or not the market is entering a bubble."

To alleviate some of these concerns, let's take a look at what various financial analysts are saying about the current residential real estate market. In the last thirty days, four of the biggest financial services giants have come to the same conclusion: the real estate market is strong and price appreciation will continue. Here are his statements on the subject:

Goldman Sachs research note on housing:

"The strong demand for housing seems sustainable. Even before the pandemic, demographic tailwinds and historically low mortgage rates drove demand to high levels. ... consumer surveys indicate that household purchase intentions are now the highest in 20 years. ... As a result, the model projects double-digit price gains this year and next. "

Joe Seydl, Senior Market Economist, JPMorgan:

"Buyers - interest rates are still historically low, although they are rising. Housing prices have soared over the last six to nine months, but we don't expect them to fall any time soon and believe it's more likely that they will continue to rise. If you're thinking of buying a new home, conditions now may be better than in 12 months' time. "

Morgan Stanley, Market Thoughts Podcast:

"Unlike 15 years ago, the euphoria in house prices today comes down to the simple logic of supply and demand. And we at Morgan Stanley have concluded that this time the sector is on a solid and sustainable footing. . . This robust demand and highly challenged supply, coupled with tight mortgage lending standards, may continue to bode well for house prices. Higher interest rates and post-pandemic movements may likely slow the pace of appreciation, but the upward trajectory remains in place. "

Merrill Lynch's Capital Markets Outlook:

"There is reason to believe that this will be an exceptionally long and strong housing boom. Demand is very strong because the largest demographic cohort in history is going through the family formation and peak home-buying stages of its life cycle. Changes in coronavirus-related preferences have also dramatically increased home-buying demand. At the same time, supply is exceptionally tight, with homes available for sale at record lows. Double-digit price gains are rationing supply."

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Even with the increases, the updated projections still don't reach the valuation levels above 10% of 2020.

However, a jump in the average projection from 5.3% to 7.7% after just one quarter is substantial. The demand will remain strong, therefore, future appreciation will be determined by how quickly the stock of houses for sale increases.

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Any doubts?

Now that you've understood that the market is very hot and will continue to be under pressure, this can generate gains for those who invest. We can help you understand the behavior of the real estate market so that you can consider investing in vacation homes in Orlando. To take advantage of all the tips we've given you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.

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