According to the recently released Modern Homebuyer Survey from ValueInsured, 58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.
what transpired just ten years ago, we can understand the concern
Americans have about the current increase in home prices. However, this
market has very little in common with what happened last decade.
The two major causes of the housing crash were:
A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
standards that were so relaxed that unqualified buyers could easily
obtain financing thus enabling them to purchase a home.
housing inventory is at a 20-year low with new construction starts well
below historic norms and financing a home is anything but simple in the
current mortgage environment. The elements that precipitated the
housing crash a decade ago do not exist in today’s real estate market.
The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.
you are one of the 58% of homeowners who are concerned about home
values depreciating over the next two years and are hesitant to move up
to the home of your dreams, take comfort in the latest
Home Price Expectation Survey.
a quarter, a nationwide panel of over one hundred economists, real
estate experts and investment & market strategists are surveyed and
asked to project home values over the next five years. The experts
predicted that houses would continue to appreciate through the balance
of this year and in 2018, 2019, 2020 and 2021. They do expect
lower levelsof appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.
you currently own a home and are thinking of moving-up to the home your
family dreams about, don’t let the fear of another housing bubble get
in the way as this housing market in no way resembles the market of a