Buying a Home - Magazine - Page 14
“
Looking back at the bubble years, house prices exceeded house-buying
power in 2006 nationally, but today house-buying power is nearly twice as
high as the median sale price nationally. . . . Many find it hard to believe,
but housing is actually undervalued in most markets and the gap between
house-buying power and sale prices indicates there’s room for further
house price growth in the months to come.
- Mark Fleming, Chief Economist, First American
“
It’s not clear at all to me that things are going to slow down significantly in the
near future. In 2005, I had a strong sense that the hot market would turn
and that, when it turned, things would get very ugly.
Today, I don’t have that sense at all, because all of the fundamentals are
there. Demand will be high for a while, because Millennials need houses.
Prices will keep rising for a while, because inventory is so low.
- Bill McBride, Calculated Risk
Bottom Line
All four strongly believe we’re not in a bubble and won’t see crashing home values like
we did in 2008. This is good news for homebuyers as you can rest assured it isn't like
the last time.
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