As home values continue to increase at levels greater than the historic norm, some are anxious that we are heading for another crash like the one we experienced ten years ago. But what about prices? Are prices appreciating at the same rate that they were before the 2006-2008 crash?
The levels of appreciation we have experienced over the last four years are not anywhere close to the levels that were reached in the four years prior to last decade’s crash.
We must understand that, to a certain extent, the current buildup in prices is the market trying to catch up after a crash that dramatically dropped prices for five years.
Prices are appreciating at levels greater than historic norms. However, we are not at the levels that led to the housing bubble and bust.