2006 doesn’t seem to long ago to me. But maybe that’s just my age. We were peaking out then with home prices escalating so fast and loans so easy to get that EVERYONE were buying homes. Some buying several homes. Over the next few years we did several hundred short sales for people. Now, ten years later prices are up again. I can’t believe my last tax assessment.
So are we head for another crash? I don’t think so. Here are some reasons why: 1. Ten years ago builders were building spec houses like nuts. They are not now and haven’t been. 2. Home prices over the past 50 years have appreciated about 3% per year. Obviously not in a straight line. Like all markets there are ups and downs. But the 10 years since the crash has allowed for a more normal appreciation level to return. 3. While 10 years ago many buyers were over leveraged. They borrowed too much and had little equity. That has changed. 4. There are not a lot of existing homes on the market. 5. Young adults have become renters. They continue to be very slow to buy.
Home ownership is one of the most important wealth builders. Buying a home more than you can afford is not a good idea. But buying a home that you live in for years is going to bring you many benefits that will help you attain wealth. If you are a young family with a stable job that you expect to have for years this might be the time to start looking. Log in and set up a search. Let’s start looking at some homes.