58% of Homeowners See a Drop in Home Values Coming

According to the recently released Modern Homebuyer Survey from ValueInsured58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.

 

After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

The two major causes of the housing crash were:

  1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
  2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

Bottom Line

If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.

Find out how much your home is worth.

Large backyard 3-bedrooms in Craig Ranch McKinney TX

3501 Camino Trl, McKinney, TX

$ Click for current price
3 BEDROOMS | 3 (3 full ) BATHROOMS | 2509 SQUARE FEET

Great features included in this 1.5 story, 3 bed, 3 bath home. Holiday meals will come together quicker with all the granite counter space under 42-inch cabinets. 3rd bedroom could also be your home office or use the open area near 2nd bedroom. Full bathroom upstairs with large linen closet off large game or media room.

 

Open Houses this Weekend in #Frisco

#Frisco Open Houses for this Weekend.

There are 83 open houses this weekend in #Frisco. 15 homes are new construction. 

Thinking new? View them yet know you should be represented by a Realtor to protect your interest.

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Derrick Houston
Rogers Healy and Associates
214.385.1221
Licensed In: TX
License #: 0592037
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72 Price Reductions in #Frisco This Week

72 Price Reductions this week in ‪#‎Frisco‬!

 

5450 Burket Dr in Starwood had the biggest reduction, 20%, down to $999,900.

If you want to know of price reductions to beat the competition before the major real estate websites, or just want to stay on top of home prices and sales in #Frisco, complete the form below or leave a comment!

A Possible Housing Meltdown? These Experts Respectfully Disagree

We want to let you know that “rumors of a new market meltdown” are not based on any reputable data. As proof, we offer you the comments of the following experts who have a totally different view on the current housing market.

Lawrence Yun, Chief Economist at NAR:

“In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing-sales since 2007.”

Jonathan Smoke, Chief Economist at realtor.com:

“We had a triple crown of April home sales reports, so 2016 is in the pole position to earn best year of home sales in a decade.”

Andrea Riquier, MarketWatch housing reporter:

“I’m calling the end of the housing “recovery.” On to ‘expansion.’”

Freddie Mac:

“Despite the disappointing economic reports, we still forecast housing to maintain its momentum in 2016.”

Steven Russolillo, Wall Street Journal housing reporter:

“A recent gauge of home builder sentiment held firmly in positive territory, according to the National Association of Home Builders. Perhaps more important, expectations for sales in the next six months jumped to the highest level of the year.”

Fannie Mae:

“Our latest housing tracker shows that the first quarter of 2016 was the second fastest first quarter pace of home sales in the past decade… Home sales typically rise in the spring and summer months, and we anticipate an acceleration in home sales that will surpass 2007’s pace by late summer.”