Home Values DEFINITELY NOT In Bubble Range

Home Values DEFINITELY NOT In Bubble Range

There are some industry pundits claiming that residential home values have risen too quickly and that current levels are on the verge of another housing bubble. It is easy to see how this thinking has taken form if we look at a graph of home prices from 2000 to today.


Home Values: DEFINITELY NOT in Bubble Range!! | Simplifying The Market

The graph definitely looks like a rollercoaster ride. And, as prices begin to reach 2006 levels again, it “seems logical” that the next part of the ride would be downhill. However, this graph includes the anomaly of the price bubble and the correction (the housing crash).


What if the bubble & bust didn’t occur?


Let’s assume that instead of the rise and fall in home prices that we saw last decade, we just had normal historic appreciation from 2000 to today. According to the 100+ experts that are surveyed for the Home Price Expectation Survey, normal annual appreciation for residential single family homes from 1987 to 1999 was 3.6%.


Starting with the median home price in 2000, we added 3.6% to it each year since then. Here is that graph intermixed with the above graph.


Home Values: DEFINITELY NOT in Bubble Range!! | Simplifying The Market
What this shows us is that, had the bubble and crash not occurred and instead we just had normal annual appreciation over this period, prices would actually be greater than they are today.


Bottom Line


There is no reason for alarm as prices seem to be right in line with where they should be.


Julie Baldino - Owner-Managing Broker Headshot
Author:
Phone: 360-910-3586
Dated: November 29th 2016
Views: 331
About Julie Baldino: Julie Baldino is a seasoned veteran of the Pacific Northwest real estate industry, and has consisten...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Construction Confidence And Its Effects On The Housing Market - A recent study conducted by the
Friends Of Trees - We took time out of our busy
A Second Wave Of Baby Boomers And Their Needs - There are 76.4 million baby
Agent Bio Tara Friedt - Tara Friedt360-787-6229Free Home

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Front Door Realty
1815 D Street
Vancouver, WA
360-450-4486
360-989-3389

Other Locations