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Tuesday, June 12, 2018

Healthy Housing Market

Today’s Housing Market is NOT 2006 All Over Again

It has been over 10 years – based on inflation alone, housing prices should be higher than where they are now! And, based on an 11.5-year calculation, houses are underpriced by about 18%.

Tougher mortgage standards are in place. We have seen some relaxing of the super restrictive standards following the bust, but tough and financially sound practices remain, unlike those in 2006. Mortgage debt and the housing affordability index all show improvement. Check out the link above for more information. It is a great time to buy a new home – or your very first.

The Reason Home Prices Are Increasing

It is pretty much the law of supply and demand. There are more buyers than sellers and that has created a sellers’ market and pressures on price. Does that mean prices will suddenly drop – no. Adjusting for inflation, home prices still have a way to go – or should we say, “grow”. It is a sign of a continuing healthy market – and a great time to invest.

Have You Checked to See How Much Has Your Home Increased in Value Over the Last Year?

There is a year over year index in the report linked above, but on this one, I want to stress that real estate is local. Real estate pricing is not national, state, county or even city. Pricing changes occur at the neighborhood level. For your best, most accurate information – see a real estate professional (push-button estimates are not your best resource!)

Finally - Homeowners & Appraisers See Closer Eye-to-Eye

As home prices were moving up, it became harder for appraisers to find adequate comps – and harder to reconcile the differences between what homeowners thought their home was worth and what the appraiser could qualify. At times, the disparity was huge.

Things have notably improved! For the first time in a few years, the homeowners and the appraisers are much closer together on price. That strengthens the selling position if a home is priced right! Be sure to click on the link above for a more in-depth look!