58 Of Homeowners See A Drop In Home Values Coming

Dated: 08/17/2017

Views: 48

58% of Homeowners See a Drop in Home Values Coming

58% of Homeowners See a Drop in Home Values Coming | MyKCM

According to the recently released Modern Homebuyer Survey from ValueInsured, 58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.

After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

The two major causes of the housing crash were:

  1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.

  2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

Bottom Line

If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.

Blog author image

Jeri Patrick

In today’s complex and difficult real estate market you need a professionals who will do whatever it takes to market and sell your home. Jeri Patrick has a team with an established history of succes....

Want to Advertise on this Site?

Latest Blog Posts

Aug 17 2018 5018 1

The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC]Some Highlights: Interest rates are projected to increase steadily heading into 2019. The higher your interest rate, the more money you

Read More

Aug 16 2018 5018 1

Homebuyers Willing to Sacrifice ‘Must-Haves’ in Favor of Good School DistrictsIt should come as no surprise that buying a home in a good school district is important to homebuyers. According to&

Read More

Aug 15 2018 5018 1

Have You Outgrown Your Starter Home?For many Americans, buying their first home is their first taste of achieving part of the American Dream. There is a sense of pride that comes along with owning

Read More

Aug 14 2018 5018 1

Are You Thinking of Selling Your Home? Competition Is Coming!The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next

Read More