No Worries Home Prices Coming In For A SOFT Landing

Dated: 02/28/2019

Views: 135

No Worries… Home Prices Coming in for a SOFT Landing | Simplifying The Market

No Worries… Home Prices Coming in for a SOFT Landing

   First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers, Pricing

Home prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest home values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing.

The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales).

Today’s market is totally different. Mortgage standards are tighter than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will come to market. The Mortgage Bankers’ Association just announced that foreclosures are lower today than at any time since 1996.

Case Shiller looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findings over the last ten months:

No Worries… Home Prices Coming in for a SOFT Landing | Simplifying The Market

As we can see, home price appreciation is softening as more inventory comes to market. This shows that real estate prices are not crashing, but merely returning toward historic appreciation numbers of 3.6% annually.

Bottom Line

Home prices are leveling off. Long term, that is a good thing for the housing market.

Click Here to check out all the available Homes on the Market Today!
OR
Click Here to Find out the Value of your Home Now
!

Blog author image

Adam Crocker

Hi, I’m Adam Crocker and I've lived in the Pacific Northwest for over 25 years! I love meeting new people and helping them purchase or sell their existing home! I work very hard for all my clients, ....

Latest Blog Posts

Are New Homes Going To Be Available To Buy This Year

In today’s economy, everyone seems to be searching for signs that a recovery is coming soon. Many experts agree that it may actually already be in motion or will be starting by the 3rd

Read More

Is The Economic Recovery Already Underway

The Wall Street Journal just released their latest monthly Survey of Economists. In an article on the findings, they reported: “The U.S. economy will be in recovery by

Read More

Is A Recession Here Yes Does That Mean A Housing Crash No Is A Recession Here Yes Does That Mean A H

Is a Recession Here? Yes. Does that Mean a Housing Crash? No.On Monday, June 8, 2020, the National Bureau of Economic Research (NBER) announced that the U.S. economy is officially in a.

Read More

Home Buying Myths

Two Big Myths in the Homebuying ProcessThe 2020 Millennial Home Buyer Report shows how this generation is not really any different from previous ones when it comes to homeownership:

Read More