Home Value Appreciation Stops Falling, Begins to StabilizeThe percentage of home price appreciation on a year-over-year basis has decreased each month for over a year. The question was how far
Bubble Ready To Burst Again Its Not Gonna Happen
According to the National Association of Realtors, home prices have just now reached the 2006 levels. The price increases we saw this year were the result of what we were taught in Econ 101: Housing inventory or supply is low and demand is high. It naturally leads to price increases until we reach equilibrium which will mean when the supply increases. How does the supply increase? By more sellers selling and not repurchasing. Normally, supply increased because builders were able to borrow money and build fast enough to create this equilibrium. However, until the local Banks go back to loaning money to local builders to again build out plats, builders are not adding enough inventory to meet the buyer demand. Hopefully, Congress will make this possible by lifting restrictions to lending at the local level.
10 years ago, the housing bubble was fueled by free and easy credit. Today, especially since the October 3 CFPB changes, most of those credit work arounds are impossible and we should be back to a market where loan delinquencies are at a tolerable level.
Latest Blog Posts
Thinking of Selling Your House? This is a Perfect Time!It is common knowledge that a great number of homes sell during the spring buying season. For that reason, many homeowners hold off
Do You Know How Much Your Home Has Increased in Value?Last year we saw headlines about a possible housing market bubble, and many wondered if Americans still felt confident about the value of their
3 Things You Need in a Shifting Real Estate MarketWhether you are thinking of selling your house or buying a home, today’s real estate headlines can be confusing – perhaps even concerning. What