Are Home Prices Approaching Bubble Territory

Dated: 06/20/2017

Views: 164

Are Home Prices Approaching Bubble Territory?

Are Home Prices Approaching Bubble Territory? | MyKCM

As home values continue to rise, some are questioning whether we are approaching another housing bubble. Zillow just reported that:

“National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade.”

Though that statement is correct, we must realize that just catching prices of a decade ago does not mean we are at bubble numbers. Here is a graph of median prices as reported by the National Association of Realtors (NAR).

Are Home Prices Approaching Bubble Territory? | MyKCM

We can see that prices rose during the early 2000s, fell during the crash and have risen since 2013.

However, let’s assume there was no housing bubble and crash and that home prices appreciated at normal historic levels (3.6% annually) over the last ten years.

Here is a graph comparing actual price appreciation (tan bars) with what prices would have been with normal appreciation (blue bars).

Are Home Prices Approaching Bubble Territory? | MyKCM

To see what homes are going for all you need to do is go to our search page, or check out Beaverton Statistics now

Bottom Line

As we can see, had there not been a boom and bust, home values would essentially be where they are right now.

Latest Blog Posts

Portland Oregon Area Residential Real Estate Review March 2018

March Residential Highlights New listings in the Portland metro area saw a slight gain compared to last year this March. At 3,648 for the month, new listings edged 1.2% over the 3,604 new

Read More

Not Owning Your Home Can Cost You A Lot Of Money

NOT Owning Your Home Can Cost You a Lot of Money!  Monday April 2nd, 2018  Buying Myths, First Time Home Buyers, For Buyers, Move-Up Buyers, Rent vs. BuyOwning

Read More

Moving Up Is More Affordable Now In Portland Then In The Last 40 Years

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 YearsTuesday March 20th, 2018If you are considering selling your current home, to either move up to a larger home or into a home in

Read More

The Cost Of Waiting Portland 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 end up paying for your home and the higher your monthly

Read More