Recent months have seen the housing market improving at a staggeringly fast rate, leading some to wonder whether another housing bubble may be approaching. Home sales have greatly exceeded the sales of prior years and home prices are rising dramatically, especially in major metropolitan areas. Home sales are also increasing despite the fact that mortgage interest rates have begun rising this year and are expected to continue rising. However, those that are afraid that the housing market may be unstable right now shouldn’t be. The housing market simply wishes to be normal again.
While housing prices have risen there are a great many factors that contributed to the increase. The economy has gotten better and a new generation of home buyers has entered the market. Demand has increased, and the inventory of homes is not enough to keep up with it. In addition to this, many builders are slowing down on new home construction specifically to avoid a new boom. The housing prices are simply increasing to what they should have been, assuming there had not been a crash.
For more information about the housing market trends in 2013 contact Brighton Escrow.