Housing Market Remains Stable
Reports indicate that the housing market remains stable regardless of the tremendous gains in home value through August. Though the gains posted in August may seem similar to the gains throughout the real estate market bubble, experts have been quick to point out key differences in the situations. Homes right now are regaining prior value rather than gaining value they never had, which is an excellent indication that the housing gains are premanent rather than volatile.
The overall home prices are still down 32.5 percent from their peak at the housing market crisis, which means they still have a long way to go before any concerns about another housing bubble come into play. Growth may slow down now that homes have recovered significant amounts of their value and now that mortgage interest rates are rising. However, the growth is still expected to continue. The growth will simply be slower and more stable. The real estate and construction industries are all doing everything they can to avoid another housing bubble, and to build true growth and a solid foundation for the market.
For more information about the current housing market contact Karen Spechler, serving all of your real estate needs in Santa Barbara.