US Home Prices Back Near The 2006 Level
According to a private analysis, the US home prices have fully-recovered from the housing bust and Great Recession of the last decade. This is phenomenal news for homeowners. The Standard & Poor’s CoreLogic Case-Shiller national home price index, released today, shows that home prices are slightly above the peak of July, 2006. This is the peak after four years of steady gains and it bodes well for the housing market.
That being said, Real Estate has always been about location; not all cities have recovered fully, but the upward trend shows reason for optimism across the board. Couple the increase in jobs with the historically low mortgage rates and we have a seller’s market. On top of all that, the incoming administration is talking about eliminating or curtailing some of the most restrictive measures put forth in the Dodd Frank act, which has stymied mortgage writer’s abilities to place buyers into their products.
For all of the good news, there are other sides to this boon – for one, inventory is tight, especially at the entry level of the market. This is great for owners in the rental market, but this tends to keep out a lot of first-time-buyers as they are priced out with the quick-moving inventory.
All in all, this is fantastic news for homeowners – the tricky part is getting more renters to make that jump into ownership. This will happen organically as they start to find that renting is more expensive than owning – especially when you consider the tax breaks afforded to homeowners.
If you have any questions about the Park Ridge market, please feel free to contact me for a detailed analysis of your home or prospective move into this area.