Home values have appreciated dramatically
in the last two years with several of the hardest hit markets seeing asking
prices up more than 20%. These include areas in California, Georgia, and
Nevada. So, what does this mean for buyers and sellers?
The Ever-Changing Housing Market
The last few years have seen some dramatic
changes in the housing market. First, the loss of value during the housing
crisis and then finally a shift in home prices as the recovery process began.
While this has been good news for some buyers and sellers waiting to get
involved in the market, the unsteadiness of the housing industry has caused
some concern. Now that things are finally settling down to "normal,"
it bodes well for the real estate market in general.
Buyers were happy to see a bargain when
prices and interest rates were low, but sellers were taking a loss on their
homes. As prices increased, it allowed many homeowners to get away from
negative equity and be able to sell their homes for at least what was owed on
them. In fact, 3.5 million properties rose out of negative equity in 2013. That
rate is expected to slow as housing prices and the increase in value slows to
what is considered more average.
What to Expect
With the housing market finally beginning
to settle down, there is less danger of a new bubble being created and
unrealistic expectations occurring in the market. It also means that fewer
homeowners will get from under negative equity in the next few months. However,
it also means that price gains look more sustainable and the market is finally
getting more balanced. While buyers may not get the same great deals that they
would have two or three years ago, the market is still good for those looking
for their new home.
If you have decided that now is a good time
to buy and you want to start on your home search, contact me to show you
available homes.
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