As reported in a recent article in MortgageNewsDaily.com the National Association of Home Builders/First American Improving Markets Index lists 70% of metropolitan areas in the US as improving for the 5th straight month. The article went on to say, “it’s worth noting that the number of improving markets is now more than three times what it was in June 2012..”
A recent article in InmanNews.com said, “Completed foreclosures down 16 percent from last year.” Interest rates are still at historic lows and all across the country inventory of homes to purchase were low in the first part of this year. In many markets (including the North Tahoe-Truckee market) this has lead to increasing prices and an increase in housing starts which has then lead to more inventory of existing homes coming available.
Are we moving into another Housing Bubble? According to another InmanNews article titled “Economists temper housing bubble worries” the answer is NO. In the article Jed Kolko, Chief Economists for Turlia, speaking to the National Association of Realtors Editors is quoted saying “Right now we are not in bubble trouble, even though prices are rising as fast as we saw in last decade’s bubble. Prices are still 7 percent undervalued relative to incomes and rents. By contrast, home prices were 39 percent overvalued during the housing boom with some areas overvalued by up to 80 percent.”
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