- In 2007 the housing market crashed due to unregulated lending.
- The demand for homes dropped due to the feds lending restrictions causing the housing market supplies to rise to surprising highs.
- Since 2012 lending has become less restricted and more regulated while the supply has gone down due to the pent-up demand of eager buyers finally able to qualify for home loans.
- Continued low interest rates have in essence subsidized a rapid ascent in pricing.
- Wage growth hasn’t kept up with surge in pricing.
The Market Now vs Last Year
This year has been unusual for the real estate market in many ways. To start the anticipation for the election year like in years past, caused abnormal market activity. Inventory is also known to decrease during the holiday season because of buyers not wanting to show their home during this time. It will be interesting to see how the market settles as the election and holiday season pass. The National Association of Realtors expect values to rise another 5% IN 2017.