Our orlando Property Management Team at Morgan Property Solutions recently reviewed the opens in a new windowModern Homebuyer Survey from ValueInsured, 58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.
After what transpired ten years ago during the Real Estate recession, understand the concerns Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.
The two major causes of the housing crash were:
- A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
- Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.
Today, housing inventory is at a 20-year low, with new construction starts below historic norms and more complex financing in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.
The latest increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.
If you’re one of the 58% of homeowners concerned about orlando Real Estate values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest opens in a new windowHome Price Expectation Survey.
Once a quarter, a nationwide panel of economists, real estate experts and market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They expect lower levels of appreciation during these years than we have experienced over the last 5 years but do not call for a decrease in values (depreciation) in any of the years mentioned.
If you currently own a home and are thinking of moving-up, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.
Get more advice form our orlando Real Estate team and opens in a new windoworlando Property Management company