IS THE HOUSING BUBBLE ABOUT TO BURST?

Some housing analysts are starting to believe that our housing market is headed for another correction. What's the real story????

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

Bottom Line

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

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Mary J. Brown

Licensed TN Real Estate Broker #00280791
RE/MAX Fine Homes
License #265183
1624 Westgate Circle, Suite 125
Brentwood TN 37064
Office: 615-371-3232
Cell: 615-260-8885
marybrownremax@gmail.com
Contact Me

Contact Me

Mary J Brown
Licensed Real Estate Broker
ABR, CDPE, CSP, CRS, GRI, SRES

RE/MAX Fine Homes
1624 Westgate Circle, Suite 125

Brentwood, TN 37027
Office: 615-371-3232
Cell: 615-260-8885
Email: marybrownremax@gmail.com​





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Mary Brown | 615-260-8885 | Contact Me

RE/MAX Fine Homes
1624 Westgate Circle, Suite 125 - Brentwood, TN 37027
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