There are some industry pundits claiming that residential home values have risen too quickly.
Also that current levels are on the verge of another housing bubble. It is easy to see how this thinking has taken form if we look at a graph of home prices for the last 16 years.
The graph definitely looks like a roller coaster ride. And, as prices begin to reach 2006 levels in most parts of the country again, it "seems logical" that the next part of the ride would be downhill. However, this graph includes the anomaly of the price bubble and the correction (the housing crash).
What if the bubble & bust didn't occur?
Let's assume that instead of the rise and fall in home prices that we saw last decade, we just had normal historic appreciation from 2000 to today. According to the 100+ experts that are surveyed for the Home Price Expectation Survey, normal annual appreciation for residential single family homes from 1987 to 1999 was 3.6%.
Starting with the median home price in 2000, we added 3.6% to it each year since then.
There is no reason for alarm as prices seem to be right in line with where they should be. Let's get together to discuss your real estate needs.