Are Home Prices Approaching Bubble Territory?
As home prices continue to rise, some are questioning whether we are approaching another housing bubble. Zillow just reported that:
National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade.”
Though that statement is correct, we must realize that just catching up to prices of a decade ago does not mean we are at bubble numbers. Here is a graph of median prices as reported by the National Association of Realtors (NAR).
The summer months should be quite busy for home buyers, sellers and real estate agents alike!
As we head into June, real estate analysts are saying that the national housing market is poised for a successful (and busy!) summer home buying market.
Several factors are at play, experts say, including low housing inventory, pent up demand and increasingly optimistic sellers.
One thing’s for sure: The next few months should be very interesting from a national housing market perspective!
What Every Buyer and Seller Should Know About Market Activity
According to the latest sales figures released by the National Association of Realtors, sales of previously owned homes increased in March by the most in four years.
In fact, purchases increased 6.1 percent to a 5.19 million annualized rate, which is the highest level it’s been since September 2013.
On average, homes were being purchased in 52 days on average, which is the fastest sales rate the country has seen since July.
Here are some more highlights from the latest data report:
- The share of first-time buyers increased slightly while distressed properties made up a smaller part of the market.
- The number of homes for sale increased in March for a second month.
- In fact, that gain was the biggest since December 2010.
- Figures from the Mortgage Bankers Association showed that the group’s index of purchase applications increased in recent weeks to the highest level since June 2013.
- The Standard & Poor’s 500 Index increased 0.5 percent to 2,107.96 recently, which is within 12 points of a record high.
- More sellers expressed confidence about buyers entering the market as the weather warms, further helping to increase the supply of properties for sale.
- In fact, the number of existing properties for sale increased 5.3 percent to 2 million in March from a month earlier.