As home values
continue to increase at levels greater than historic norms, some are concerned
that we are heading for another crash like the one we experienced ten years
ago. We recently explained that the lenient lending
standards of the previous decade (which created false demand) no longer exist.
But what about prices?
Are prices appreciating at
the same rate that they were prior to the crash of 2006-2008? Let’s look at the
numbers as reported by Freddie
Mac:
The levels of appreciation we have
experienced over the last four years aren’t anywhere near the levels that were
reached in the four years prior to last decade’s crash.
We must also realize that, to a degree, the current run-up
in prices is the market trying to catch up after a crash that dramatically
dropped prices for five years.
Bottom Line
Prices are appreciating at levels
greater than historic norms. However, we are not at the levels that led to the housing
bubble and bust.
Contact your local expert’s at The Melissa Thompson Team 901-729-9526 or Melissa@YourKeyTomemphis.com for all
your Real Estate needs!
By: KCM Crew
