Are Home Prices Finally Leveling Off?

Home values have accelerated at break-neck speed over the past several years, leaving many people wondering “How long will this continue?!” In an August 10th article on Forbes.com, all signs point to a leveling off of home prices nationwide.  The reason for the cooling in rocketing appreciation has to do with higher inventory levels and lower demand caused by higher home prices. 

Many people have wondered if we’re headed for a “Crash”, such as the one experienced in the 2009 recession.  No one knows the future, however, indicators seem to point to a “cooling” in the real estate market, but not a “crashing”.  That jives with what we are seeing here locally:  inventory starting to go up (ever so slightly!), prices holding but not continuing their almost vertical trajectory, and fewer multiple offer situations.  Interest rates have continued to hover in the 3% range for 30 year mortgages.

In summary, I believe home prices will start leveling off, inventory levels will start to gradually increase, and apart from unforeseen circumstances, the local real estate market will remain strong and healthy!  Questions?  Give us a call!  We love talking real estate with our clients!