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I've noticed the homes in my neighborhood for sale have taken a huge jump in price compared to last spring. More like a $20,000 to $30,000 jump. Sounds great to me, but makes me wonder if this is too fast. The prices have surpassed to 2006 prices by a margin it seems. Seems kind of fast to me, but not sure if it's good news or not.
I don't see the market crashing like 2008. Back then, the loan scandals and all the sub prime lenders gave too many people who could not afford homes loans. The market is much more stable now and we have much tougher standards to get a home loan.
Prices can taper off and fall a bit. But I really don't see a bubble coming. Home prices were depressed and below market, and have come back up to where there should be.
I bought a new townhome in February of 2012. Now 3 years later, houses and townhomes in my subdivision are going for 50,000-60,000 more than what I paid.
Builders are raising prices and there are far less incentives. So I see a fairly stable market the next 5 years.
it depends upon the location and the price range. but generally, our activity (#'s sold) truly peaked in late spring 2008, and our price appreciation peaked sometime in 2007. Prices did not drop from 07-08, they just slowed.
Most prices didn't fall back to 2006 levels anyway...or at least, they haven't been there for 24 months. In the upper - $600K+ maybe - they are in some locales about = 2007, and in some locales > 2007.
My Chapel Hill neighborhood ($600-725K) is still below peak prices. At the lower end they are ~$20K below peak. At the upper end they are ~$75K below peak.
My Chapel Hill neighborhood ($600-725K) is still below peak prices. At the lower end they are ~$20K below peak. At the upper end they are ~$75K below peak.
How much of a bubble can there be and still be below peak prices?
I.e., do we have to hit or exceed the peak we saw to be bubbled?
I should have been clearer as well - in the upper ends, some prices are still below their peak. It will be a long time before the $1MM+ market north of 540 recovers fully.
I AM seeing homes going up in prices in the more desirable areas. I AM seeing many of these homes being sold for close to their tax value and a few that exceeded it.
With low inventory, a home in great condition, desirable location, could get 12 showings in 2 days!!!
And in that case, will a seller accept less than full price? Or, will a bidding war ensue and the price of the home go up in which case, most of the prices within that n'hood will also go up.
I don't know if this is considered a bubble or not but it does concern me when prices start going up so quickly as I'm seeing.
I AM seeing homes going up in prices in the more desirable areas. I AM seeing many of these homes being sold for close to their tax value and a few that exceeded it.
With low inventory, a home in great condition, desirable location, could get 12 showings in 2 days!!!
And in that case, will a seller accept less than full price? Or, will a bidding war ensue and the price of the home go up in which case, most of the prices within that n'hood will also go up.
I don't know if this is considered a bubble or not but it does concern me when prices start going up so quickly as I'm seeing.
Do you think inventory will go up as we go into late Spring/Summer or will it be low all year?
Do you think inventory will go up as we go into late Spring/Summer or will it be low all year?
Typically, more homes come on the market in the spring. And, more come on the market with people wanting to move before school starts for the new year.
It is usual for sellers to put their homes on the market in April and May, hoping to sell and move by July. The problem is that homes are selling so quickly that sellers may wait until May/June to put those homes on the market.
With inventory being so low, there aren't enough homes for buyers so buyers are fighting for the same home and with multiple offers, come the prices going up.
I know of a home that went on the market and has had 12 showings in 2 days.
My Chapel Hill neighborhood ($600-725K) is still below peak prices. At the lower end they are ~$20K below peak. At the upper end they are ~$75K below peak.
Same here in Cary. Similarly-priced neighborhood. Not quite at peak yet.
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