Stability of Home Prices
It is no secret that home prices over the last 10 years have been constantly fluctuating. Fortunately, recent housing trends are showing a push towards stability and sustainability. For the first time since 2012, home prices did not increase more than 20 percent year over year in the largest 100 home markets.
The welcome change of sustainability in the housing market is a huge improvement from the hyper-rebounding of some of the housing markets, especially in the West. Some home prices between 2012 and 2013 rose as much as 30 percent, which caused worry from certain economists that there was an accelerated boom-bust cycle approaching.
The extreme price increases caused unrealistic expectations for both home buyers and sellers. It encouraged more home flipping and caused home owners to put off selling their homes since they thought the large price increases would continue, leading to an even bigger payout.
Home prices in May rose the slowest rate in the past 13 months, but they still rose 8 percent. This is still well above the historical long-term norm for home-price appreciation. The month of May also brought a price increase of 2.4 percent quarter over quarter.
Going along with the moderation of price increases, the number of markets that showed a year over year price decline was also at a post-recession low. The only metro area markets where prices were lower than one year ago were El Paso, Hartford, Albany, and Little Rock.
Rent increases also moderated across the nation, going up by 5.1 percent nationally. Rents for apartments are up 5.8 percent and single-family rents are up by 2.1 percent. Of the 25 largest rental markets in the nation, rents rose the most in San Francisco, San Diego, and Oakland.
If you are looking to invest in a home in Danville or the surrounding areas, contact the Zwahlen Team. As real estate experts, they can help you sell your home or find a dream home that meets all your needs.