NCR - Berkeley Reduced Fee Real Estate Broker
  • Home
  • SELLERS
    • Seller Signup
    • What's My Home Worth?
    • FAQ
    • 2022 Fall Sellers Guide
  • BUYERS
    • Buyer Rebate Program
    • 2022 Fall Buyer Guide
  • SEARCH HOMES
    • BERKELEY HOMES FOR SALE
    • EL CERRITO HOMES FOR SALE
    • OAKLAND HOMES FOR SALE
    • EMERYVILLE HOMES FOR SALE
    • SAN FRANCISCO HOMES FOR SALE
    • WALNUT CREEK HOMES FOR SALE
    • DANVILLE HOMES FOR SALE
    • SAN RAMON HOMES FOR SALE
  • Resources
    • How To Sell Your Home Fast!
    • Home Buying Guide
    • Room By Room Workbook
    • One Cool Thing
    • Videos
  • My Blog
  • CMA
  • About Me
  • Contact

Real Estate Matters

This Isn't a Housing Bubble: Here's Why

9/17/2015

Comments

 
Picture
by Michael Ertem
Home prices are rising rapidly, but economists are deflating concerns that another "housing bubble" is brewing.

A recent report from CoreLogic shows that twice as many metro markets are considered "overvalued" – prices are inflated relative to incomes -- in the second quarter of this year compared to the first three months of the year. But economists say it's not a housing bubble because bubbles eventually burst and home prices this time around aren't likely to fall.

Just because you're overvalued doesn't mean that you're in a bubble or there is an impending crash," says Sam Khater, CoreLogic's deputy chief economist. "Some markets are overvalued because of strong fundamentals."

The National Association of REALTORS® reported that the national median sales price is now above its 2006 peak. The median existing-home price for all housing types reached $236,400 in June – 6.5 percent above year ago levels and surpassing the peak median sales price set in July 2016 at $230,400, according to NAR.

CoreLogic's recent report shows that home prices in 14 of the largest 100 markets have now risen above its long-term fundamental values – with six of these markets in Texas alone. Housing demand is strong and supply has been near record lows, which has paved the way for price increases among the state's strong economy.

About 10 years ago, a housing bubble was being fueled by free and easy mortgage credit – not the case today, CNBC reports. Today, strong demand and weak supply is driving the rise in prices.

"Agents continue to highlight buyers' growing frustration with rising prices, but see current levels largely supported by tight inventory conditions," according to a monthly survey of real estate professionals by Credit Suisse.

Source: "Frothy, Yes, But Don’t Call it a Housing Bubble," CNBC (Sept. 15, 2015)
Comments
    Picture
    Save Thousands of Dollars When Selling Your Home and Keep More of Your Equity
    Picture
    What is My Home Worth?
    Picture
    Picture
    Things to Consider When Buying a Home Fall 2022 Edition
    Picture
    Things to Consider When Selling Your House Fall 2022 Edition
    Picture
    The Super Secrets of Credit Repair
    View my profile on LinkedIn

    MONTHLY NEWSLETTER

    Archives

    October 2022
    December 2018
    September 2017
    June 2017
    December 2016
    September 2016
    May 2016
    April 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015

    RSS Feed

    Reviews on Zillow
    3354592
    "We met Mike when we were house hunting in Albany, one of the most prized neighborhoods in the bay area. Mike with his honest and charismatic ... more "
    5.0/5.0
    by manelle ouaaz8
    2103529
    "Michael assisted me in locating a home and financing the mortgage. First, being new to the area, he was patient as I gathered information about the ... more "
    5.0/5.0
    by MichaelGoetz8
    1271135
    "Mr. Michael Ertem has been the top real estate professional I have been working with nearly 20 years. I have had half a dozen successful business ... more "
    5.0/5.0
    by pekkan6

    Mortgage Calculator



Northern Crest Realty
930 Dwight Way Suite  10A
Berkeley, CA 94710
Cal Bre # 01977989
© Copyright Northern Crest Realty 2015
About Us
​Downloads
Search Homes
Privacy Policy
Photos used under Creative Commons from DncnH, StockMonkeys.com, aag_photos, bluelotus92, bobbi vie, Eldkvast, West Midlands Police, Rennett Stowe, Usine Collaborative, Montgomery Cty Division of Solid Waste Services, singlerentinmobiliaria, KAZVorpal, wsilver, shrinkin'violet, Perfect Homes, Dima Bushkov, Daddy-David, ruimcosta, Biblioteca General Antonio Machado, Professional Copywriters' Network, AJC ajcann.wordpress.com, Seniju, Keith Williamson, rikkis_refuge, CommNetwork, fabola, the real Kam75, Soon., GotCredit
  • Home
  • SELLERS
    • Seller Signup
    • What's My Home Worth?
    • FAQ
    • 2022 Fall Sellers Guide
  • BUYERS
    • Buyer Rebate Program
    • 2022 Fall Buyer Guide
  • SEARCH HOMES
    • BERKELEY HOMES FOR SALE
    • EL CERRITO HOMES FOR SALE
    • OAKLAND HOMES FOR SALE
    • EMERYVILLE HOMES FOR SALE
    • SAN FRANCISCO HOMES FOR SALE
    • WALNUT CREEK HOMES FOR SALE
    • DANVILLE HOMES FOR SALE
    • SAN RAMON HOMES FOR SALE
  • Resources
    • How To Sell Your Home Fast!
    • Home Buying Guide
    • Room By Room Workbook
    • One Cool Thing
    • Videos
  • My Blog
  • CMA
  • About Me
  • Contact