Here’s why home-price appreciation hasn’t yet reached a tipping point

house for saleScott Olson/Getty

  • Unadjusted home prices nationwide are now 1.3% above the housing boom peak in 2006.
  • Price appreciation in today’s housing market is characterized by a shortage of supply, while appreciation in mid-2000s was driven by a surge in demand.
  • Consumer house-buying power is stronger today than previous housing booms years.
  • House prices will continue to be supported by strong economic conditions and the shortage of supply relative to demand.

House price appreciation remains on a tear, as unadjusted home prices nationwide increased by 7.3 percent compared with a year ago and are now 1.3 percent above the housing boom peak in 2006, according to DataTree by First American. The U.S. economy continues to perform well, as the current economic expansion reaches record levels, prompting some to ponder when it will end.

“We’re seeing the first indications that price appreciation may be slowing, but the underlying fundamental housing market conditions support a natural moderation of house prices rather than a sharp decline.” 

It’s no secret the housing market played a central role in the last recession, so many may expect history to repeat. However, the housing market today is very different from the housing market during the previous housing boom. 

See the rest of the story at Business Insider

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Post Author: martin

Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of and Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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