Home Values to Return to Peak by 2017?
A recent study released by Zillow shows how home values may be returning to their peak by the year 2017. This comprehensive study looked towards the projections made by over a hundred experts to determine a baseline expectation.The study, called the Zillow Home Price Expectations Survey, found that a home value increase of 6.7 percent is expected by the end of this year. This is in comparison to the usual increase in home value which is 3 percent per year.
Home prices are expected to slow down after this year, continuing to rise but not as quickly. It’s believed that the total increase should be 23.7 percent by 2017, which will have risen the housing prices back to peak prices yet again. However, experts also warn that the home price increases may be making it more difficult for some individuals to purchase houses, and this is a situation that may already be occurring as mortgage interest rates rise. Many of the experts believe that if mortgage rates hit 6 percent, some serious consequences will be seen.
For more information about the current housing market and rising home values contact Karen Spechler at Santa Barbara Real Estate.
Karen Spechler- Santa Barbara Real Estate