Housing Prices are NOT Heading for Another Crash

As home values continue to increase at levels greater than historic norms, some are concerned that we are heading for another crash like the one we experienced ten years ago. We recently explained that the lenient lending standards of the previous decade (which created false demand) no longer exist. But what about prices?

Are prices appreciating at the same rate that they were prior to the crash of 2006-2008? Let’s look at the numbers as reported by Freddie Mac:

Housing Prices are NOT Heading for Another Crash | Simplifying The Market

The levels of appreciation we have experienced over the last four years aren’t anywhere near the levels that were reached in the four years prior to last decade’s crash.

We must also realize that, to a degree, the current run-up in prices is the market trying to catch up after a crash that dramatically dropped prices for five years.

Bottom Line

Prices are appreciating at levels greater than historic norms. However, we are not at the levels that led to the housing bubble and bust.

Source: Real Estate with Jo Soss

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Author:Jo Soss

:: About the Author :: Jo Soss is the designated Broker and owner of Homefront Realty in Bremerton, Washington. Selling real estate in the Puget Sound area since 1994 she has vast knowledge of all aspects of a real estate transaction. Being a down to earth, service oriented professional you can expect the service you deserve from her.

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