It might sound surprising, but the housing market has fully recovered. AM radio and late-night cable TV are even advertising seminars for house flipping. However, it doesn’t mean the Better Business Bureau (BBB) hasn’t received any complaints. The rise in house market also led to an increase in scams, like Alt-A mortgages and liar loans.
People now have second thoughts despite the booming housing market. To ensure a safe investment, they have to rely on BBB to verify credible companies similar to Primary Residential Mortgage, Inc.
Yet, that doesn’t mean there is a housing bubble.
The Current State of the Housing Market
The recent real estate atmosphere is in good condition. The housing prices continue to surge and the average home prices are now at its greatest condition. CoreLogic reveals the national home prices increased by 5.7 percent in June, which shows an even quicker degree of appreciation compared to the 5.4 percent rate in April and 5.3 percent rate in May. The great demand led to new home sales getting a seven-year high.
Yet, there are critics that advise against purchasing a new home because the high demand and increasing rates might mean that there is a bubble. However, the housing market is actually healthier compared to the run-up before.
Realtor has designed a bubble index that portrays the contrasting status from a decade ago. They measured it using the price-to-income ratios, the number of buyers using mortgage financing and the ratio of house flipping. They revealed that they don’t perceive any behavior that resembles the meltdown before.
The Real Deal behind the False Bubble
The recent housing status is nothing like the previous bubble. The current peak of around 1.2 million is not nearly enough to reach the bubble-era high of around 2.3 million monthly. Researchers believe that there would be a quantity glut rather than the minimal supply that serves as gust to the sales if the market is currently experiencing another bubble.
The housing market is currently in a healthy state that continues to naturally and gradually grow. Fears of the previous meltdown are the only major factor that is holding people down. If you want to purchase a home, now will be the ideal time.