There is no doubt that home prices in the vast majority of housing markets across the country are continuing to increase on a month over month basis. The following map (based on data from the latest CoreLogic pricing report) reveals the appreciation level by state:
These increases in value have caused some to be concerned about a new price bubble forming in residential real estate. Here are quotes from many of the most respected voices in the housing industry regarding the issue:
Nick Timiraos, reporter at the Wall Street Journal:
“Predictions of a new national home price bubble look unfounded for now, according to data.”
Michael Fratantoni, Chief Economist, the Mortgage Bankers Association:
“I don’t really see it as a bubble.”
Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania:
“My view is that we are a long way from another house price bubble.”
Rajeev Dhawan, Director of Economic Forecasting Center at J. Mack Robinson College of Business, Georgia State University:
“To have a bubble, you need to have construction rates higher than the perceived demand, which is what happened in 2003 to 2007. Right now, however, we have the reverse of that.”
Victor Calanog, Chief Economist, Reis:
“The housing market has yet to show evidence of systematic runaway asset price inflation characterized by home prices rising much faster than household income.”
David M. Blitzer, Chairman of the Index Committee for S&P Dow Jones:
“I would describe this as a rebound in home prices, not a bubble and not a reason to be fearful.”
Andrew Nelson, US Chief Economist, Colliers International:
"I don't think there is a housing bubble.”
George Raitu, Director, Quantitative & Commercial Research, NAR:
“We do not consider the current market conditions to present a bubble."
Christopher Thornberg, Founding Partner, Beacon Economics:
"The housing market is far from overheated.”
So why have prices been increasing?
Today, there is a gap between supply (number of houses on the market) and demand (the number of buyers looking for a new home). In any market, this would cause values to increase. Here are some experts’ comments on this issue:
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
General Inquiries: email@example.com
Office Number: 1 (800) 683-5651
Texas Real Estate Commission Consumer Protection Notice
How Low Supply & High Demand Impacts the Real Estate Market [INFOGRAPH
"I highly recommend Kimberly and I do so without reservation. She was a great listener, movtivated me when I needed it, and very passionate about her work and life in general. Two words to describe Kimberly..... A WINNER.