Words we really don’t want to hear today is “Housing Bubble” and it seems to be the case that we are not going to, at least for now. With home prices expected to appreciate by over 5% this year, some are beginning to worry about a new housing bubble forming.
Warren Buffet addressed this issue last week in an article by Fortune Magazine.
He simply explained:
“I don’t see a nationwide bubble in real estate right now at all.”
Later, when questioned whether real estate and/or mortgaging could present the same challenges for the economy as they did in 2008, Buffet said:
“I don’t think we will have a repeat of that.” (Notice the I don’t think)
What factors are driving home prices up is the question?
It is easily explained by the theory of supply and demand. There is a lack of housing inventory for sale while demand for that inventory is very strong. According to a recent survey of agents by the National Association of Realtors(NAR), buyer traffic was seen as either “strong” or “very strong” in 44 of the 50 states (the exceptions being: Alaska, Wyoming, North Dakota, West Virginia, Connecticut and Delaware).
Also, in NAR’s latest Pending Home Sales Report, it was revealed that the index was the highest it has been in a year.
What does the future bring?
As prices rise, more families will have increased equity in their homes which will enable them to put their home on the market. As more listings come to market, price increases should slow to more normal levels.
Anand Nallathambi, President & CEO of CoreLogic, recently addressed the issue:
“Home price gains have clearly been a driving force in building positive equity for homeowners. Longer term, we anticipate a better balance of supply and demand in many markets which will help sustain healthy & affordable home values into the future.”
The KEY for YOU as a Homeowner or Prospective Homeowner is to keep up on changing trends and that is why I am here for YOU!! I will keep you updated on what is happening in the Atlanta and North Georgia markets so you will be informed and up to date!
Stay tuned and visit my site @ AnitaWheelerRealtor.com or if you have a question about Selling, Listing or just want to talk about the market you can reach me at:
Anita Wheeler 404.219.1938