What are the signs of a strong housing market? We’re here to tell you.
It all starts with the economy. Right now, there’s really only one portion of our economy that’s firing on all cylinders, and that’s the housing market.
New home sales are currently at their highest level since 2008 and home prices are at or above their all-time highest levels in almost all areas on the Wasatch Front.
The economy will eventually see a big boost from strong housing sales. We think it’s a little premature to start worrying about whether a recent housing market rebound could lead to another real estate bubble. Appreciation in the first quarter of 2016 was only up 5.7% from last year. That’s not too bloated a number. “Now is the time to get involved in buyer or selling real estate.” The recession that happened in 2008 was largely a byproduct of the tech bubble. Normal recessions are caused by excess somewhere, but that level of excess doesn’t seem to exist anywhere right now.
Here’s a final thought: If interest rates go up by 1%, the cost of owning a home will go up by 10%. Which is going to happen first - home prices falling by 10% or interest rates going up by 1%?
If you have any questions for us, don’t hesitate to give us a call or send us an email. We’re always here to help.