Housing Bubble ? What Bubble?
By: investUSA360 •
The Fall 2017 edition of The Housing and Mortgage Market Review® (HaMMR?), released today by Arch Mortgage Insurance Company (“Arch MI”) reports that housing markets around the USA are expected to remain strong and healthy through end of 2018 and possibly further with no bubble in sight and no projection of falling prices.
The HaMMR features the Arch MI Risk Index®, a statistical model based on recent housing market indicators. The index anticipates that the probability of home prices decreases in the top 401 cities around the nation is only 4%. The trend reflects strong job markets, low interest rates, a housing shortage and other strong economic indicators.
Dr. Ralph G. DeFranco, Global Chief Economist, Mortgage Services of Arch Capital Services Inc reports that “People waiting for home prices to fall before buying may want to change their strategy, as the overall housing market is expected to stay strong for the foreseeable future,” “Our research shows no housing bubble is forming in the United States, with prices overall near historic norms compared to incomes.”
It was also reported that concerns over the nation's housing prices hitting an all time high appears to be overblown. According to the report, once inflation has been accounted for, national home prices are still 10%below their prior peak. This doesn't mean that every market is functioning the same however as home prices have risen in Colorado, Idaho, North Dakota and the Pacific Northwest (Washington and Oregon), areas like New England and energy-extraction states like Alaska, but areas like West Virginia and Wyoming are seeing a slower recovery and increase in prices.
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real estate, investment, real estate market