Shorewest Reports: Are We At Risk for Another Housing Bubble?

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There has been a lot of speculation with the recovery of the real estate market that we are entering another housing bubble. Although we have experienced some rapid turnaround, there is no reason to fear that prices are artificially inflated. Here is what real estate industry professionals have to say about the possibility of another housing bubble.

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  • Alex Villacorta, Vice President, Research and Analytics, Clear Capital: “The big gains have been in markets where there was a low basis. I think prices are where they should be.”
  • Mark Fleming, chief economist, CoreLogic: “We looked at incomes and home prices, and what we found was that we were 10-12% overinflated at the peak of the bubble. The crash took us to 20% under, and now we are at 2% under, which is within the margin error. [Only] If we see growth of another 10-12% in 2014, and I don’t think we will, then we can be worried about a bubble.”
  • Rick Sharga, Executive Vice President, “We’ve seen market forces behave the way they’re supposed to: rising prices and higher interest rates led to lower affordability, reduced demand, and a slowing in home price appreciation.”
  • Amy Crew Cutts, Senior Vice President and Chief Economist, Equifax: “Homebuilders are buildeing where there is demand. Homes are different than what we saw before. All come back to a more sensible aspect.”

If you want to learn more about price appreciation and valuation in your area, contact your local Shorewest real estate agent. Agents can provide the most recent and accurate data for your neighborhood.

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Categories: Home Buying, Home Selling, Real Estate News

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