Home Prices Finally Showing Signs of Stabilization
When home prices go up, that’s usually good news. Homeowners can sell their existing home at a higher price and move to a larger place and a “larger home means larger mortgages”.
Still, when home prices explode, sometimes that’s bad news. For starters, sharp increases in home prices can cause homeowners to have unrealistic expectations and make them unwilling to sell their homes.
Luckily, home prices are still going upwards, but also showing signs of stabilization. All of the largest 100 metro areas have had year-over-year price increase of less than 20 percent, “the first time that’s happened since July 2012.” Only four markets have experienced declines in asking prices: El Paso, Texas; Hartford, Connecticut; Albany, New York; and Little Rock, Arkansas.
According to Jed Kolko, this is good, because prices are balanced and sustainable, which hasn’t always been the case since the price recovery began.
Read the full article in Housing Wire.