Home prices are rising fast-again. According to the National Association of Realtors, May price jump was the 39th consecutive price increase month. It was expected that prices would climb after the housing bubble but from May 2014 to May 2015 it jumped at a remarkable rate of 7.9%. Furthermore NAR according to Nar, the number of existing homes sold was 5.1% higher than the seasonally adjusted rate of 5.35 million.
It was called A Housing Bubble back in 2008 after the crazy instances in the economy that drove home prices to increase. It was very risky for both homebuyers and lenders and unclear dealings were everywhere. Everybody took advantage of sudden trend in residential real estate prices, especially the lenders who got rich easily.
Presently, median home prices are 35% higher than they were 4 years ago while the number of homes sold despite the high prices became 30% higher. With these trends many are concerned if this is the Housing Buble 2.0? If it is, then, where is it heading to?
Is this Housing Bubble 2.0? And if so, is it getting ready to burst? According to experts Dan Caplinger and Jason Hall with the way that residential real estate rates are trending it can be some sort of Housing Bubble. There has been record-high levels of increase in the past 4 years but both specialist believe that the concern for a housing bubble is still unjustified. The market should not be watching out for a housing bubble but instead it should be concerned that there is an irrational price inflation point us back to the law of supply and demand in real estate where general speaking, prices rise when the supply of listed homes are below six months' worth of sales. The trend in which housing prices are going is normal and still within the expected reasons.
