[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f3r6uq2ux8rvci":3,"$ffeh0925h8cuz":42,"$f2emv3tus0uf1":46,"$fbwk2pqjjqsc7":50},{"item":4,"previous":30,"next":36},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":9,"isInfographic":14,"categories":15,"isVideo":14,"videoThumbnail":9,"videoSource":9,"publishedAt":28,"updatedAt":29},1772,"are-home-prices-headed-toward-bubble-territory","Are Home Prices Headed Toward Bubble Territory?","Talk of a housing bubble is beginning to crop up as home prices have appreciated at a rapid pace this year. This is understandable since the appreciation of residential real estate is well above historic annual averages. According to the \u003Cem>Federal Housing Finance Agency\u003C\u002Fem> (FHFA), annual \u003Ca href=\"https:\u002F\u002Fwww.fhfa.gov\u002FAboutUs\u002FReports\u002FReportDocuments\u002F2020Q3_HPI.pdf\">appreciation\u003C\u002Fa> since 1991 has averaged 3.8%. Here are the latest 2020 appreciation numbers from three reliable sources:","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F12\u002F08133915\u002F20201209-KCM-Share.jpg","Talk of a housing bubble is beginning to crop up as home prices have appreciated at a rapid pace this year. This is understandable since the appreciation of residential real estate is well above historic annual averages. According to the \u003Cem>Federal Housing Finance Agency\u003C\u002Fem> (FHFA), annual \u003Ca href=\"https:\u002F\u002Fwww.fhfa.gov\u002FAboutUs\u002FReports\u002FReportDocuments\u002F2020Q3_HPI.pdf\">appreciation\u003C\u002Fa> since 1991 has averaged 3.8%. Here are the latest 2020 appreciation numbers from three reliable sources:\u003C!--more-->\r\n\u003Cul>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.fhfa.gov\u002FAboutUs\u002FReports\u002FPages\u002FUS-House-Price-Index-Report-2020-Q3.aspx\">FHFA\u003C\u002Fa>: 7.8%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.corelogic.com\u002Fnews\u002Fgaining-momentum-annual-u.s.-home-prices-appreciated-7.3-in-october-corelogic-reports.aspx\">CoreLogic\u003C\u002Fa>: 7.3%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.spglobal.com\u002Fspdji\u002Fen\u002Fdocuments\u002Findexnews\u002Fannouncements\u002F20201124-1264559\u002F1264559_cshomeprice-release-1124.pdf\">Case-Shiller\u003C\u002Fa>: 7%\u003C\u002Fli>\r\n\u003C\u002Ful>\r\nIt’s easy to jump to the conclusion that house appreciation is out of control in today’s market. However, we need to put these numbers into context first.\r\n\u003Ch4>\u003Cstrong>Inflation and the Comeback from the Housing Crash\u003C\u002Fstrong>\u003C\u002Fh4>\r\nFollowing the housing crash, home values depreciated dramatically from 2007-2011. Values are still recovering from that unusually long period of falling prices. We must also realize that normal inflation has had an impact.\r\n\r\nBill McBride, the founder of the well-respected \u003Cem>Calculated Risk\u003C\u002Fem> blog, recently summed it up \u003Ca href=\"https:\u002F\u002Fwww.calculatedriskblog.com\u002F2020\u002F11\u002Freal-house-prices-and-price-to-rent.html\">this way\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“It has been over fourteen years since the bubble peak. In the Case-Shiller release today, the seasonally adjusted National Index, was reported as being 22.2% above the previous bubble peak. However, in real terms (adjusted for inflation), the National index is still about 2% below the bubble peak…As an example, if a house price was $200,000 in January 2000, the price would be close to $291,000 today adjusted for inflation.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch4>\u003Cstrong>The COVID Impact on Home Prices\u003C\u002Fstrong>\u003C\u002Fh4>\r\nThe pandemic caused many households to reconsider whether their current home still fulfills their lifestyle. Many homeowners now want larger yards that are both separate and private.\r\n\r\nTheir needs on the inside of the home have changed too. People now want home offices, gyms, and living rooms well-suited for video conferencing. Barbara Ballinger, a freelance writer and the author of several books on real estate, recently \u003Ca href=\"https:\u002F\u002Fmagazine.realtor\u002Fhome-and-design\u002Ffeature\u002Farticle\u002F2020\u002F12\u002Fa-myriad-of-home-trends-to-gain-momentum-in-2021\">wrote\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“While homeowners continue to want their outdoor spaces that offer a safe retreat, that appeal has shifted into other parts of the home, coupling comfort with function. In other words, homeowners want amenities for work and leisure, and they plan to enjoy them long after the pandemic.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nAt the same time, concerns about the pandemic have caused many homeowners to put their plans to sell on hold. \u003Cem>Realtor.com\u003C\u002Fem> just released their November \u003Ca href=\"https:\u002F\u002Fwww.realtor.com\u002Fresearch\u002Ftopics\u002Fhousing-supply\u002F\">Monthly Housing Market Trends Report\u003C\u002Fa>. It explains:\r\n\u003Cblockquote>\u003Cem>“Nationally, the inventory of homes for sale decreased 39.2% over the past year in November…This amounted to 490,000 fewer homes for sale compared to November of last year.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nMore people buying and fewer people selling has caused home prices to escalate. However, with a vaccine on the horizon, more homeowners will be putting their houses on the market. This will better balance supply with demand and slow down the rapid appreciation.\r\n\r\nThat’s why major organizations in the housing industry are calling for much more moderate home appreciation next year. Here are the most recent forecasts for 2021:\r\n\u003Cul>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fcdn.nar.realtor\u002Fsites\u002Fdefault\u002Ffiles\u002Fdocuments\u002Fforecast-Q3-2020-us-economic-outlook-0-11-17-2020.pdf\">National Association of Realtors\u003C\u002Fa>: 4.5%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fresearch\u002Fforecast\u002F20201014_quarterly_economic_forecast.page?\">Freddie Mac\u003C\u002Fa>: 2.6%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.fanniemae.com\u002Fmedia\u002F37166\u002Fdisplay\">Fannie Mae\u003C\u002Fa>: 2.1%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.mba.org\u002Fnews-research-and-resources\u002Fresearch-and-economics\u002Fforecasts-and-commentary\">Mortgage Bankers Association\u003C\u002Fa>: 2%\u003C\u002Fli>\r\n\u003C\u002Ful>\r\n\u003Ch4>\u003Cstrong>This Is Nothing Like 2006 \u003C\u002Fstrong>\u003C\u002Fh4>\r\nFinally, let’s put to rest some of the concerns that today’s scenario is anything like what led up to the last housing crash. Lawrence Yun, \u003Cem>Chief Economist\u003C\u002Fem> at the \u003Cem>National Association of Realtors\u003C\u002Fem> (NAR), explains why this is \u003Ca href=\"https:\u002F\u002Fmagazine.realtor\u002Fnews-and-commentary\u002Ffeature\u002Farticle\u002F2020\u002F11\u002Fthe-double-edged-housing-boom\">nothing like 2006\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“Such a frenzy of activity, reminiscent of 2006, raises questions about a bubble and the potential for a painful crash. The answer: There’s no comparison. Back in 2006, dubious adjustable-rate mortgages taxed many buyers’ budgets. Some loans didn’t even require income documentation. Today, buyers are taking out 30-year fixed-rate mortgages. Fourteen years ago, there were 3.8 million homes listed for sale, and home builders were putting up about 2 million new units. Now, inventory is only about 1.5 million homes, and home builders are underproducing relative to historical averages.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nMost aspects of life have been anything but normal in 2020. That includes buying and selling real estate. High demand coupled with restricted supply has caused home prices to appreciate above historic levels. \u003Cstrong>With the end of the health crisis in sight, we will see price appreciation return to more normal levels next year.\u003C\u002Fstrong>","\r\nMost aspects of life have been anything but normal in 2020. That includes buying and selling real estate. High demand coupled with restricted supply has caused home prices to appreciate above historic levels. \u003Cstrong>With the end of the health crisis in sight, we will see price appreciation return to more normal levels next year.\u003C\u002Fstrong>",false,[16,20,24],{"id":17,"name":18,"slug":19},5,"For Buyers","buyers",{"id":21,"name":22,"slug":23},6,"For Sellers","sellers",{"id":25,"name":26,"slug":27},9,"Home Prices","home-prices","2020-12-09T10:00:16Z","2020-12-09T11:00:26Z",{"id":31,"slug":32,"title":33,"featuredImage":34,"publishedAt":35,"contentType":10,"isVideo":14},1771,"an-honest-look-at-unemployment-numbers","An Honest Look at Unemployment Numbers","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F12\u002F07161722\u002F20201208-KCM-Share-1.jpg","2020-12-08T10:00:32Z",{"id":37,"slug":38,"title":39,"featuredImage":40,"publishedAt":41,"contentType":10,"isVideo":14},1773,"why-it-makes-sense-to-sell-your-house-this-holiday-season","Why It Makes Sense to Sell Your House This Holiday Season","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F12\u002F03144652\u002F20201208-KCM-Share.jpg","2020-12-10T10:00:57Z",{"cover":43,"open":44,"shareSpread":45},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",{"cover":47,"open":48,"shareSpread":49},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Magazine-original.png",[51,55,56,57,61,65,66,70,74,78,82,86,90,94,98,102,106,110,114,118,122,126,130,134,138,142,146,150,154,158],{"id":52,"name":53,"slug":54},1,"Uncategorized","uncategorized",{"id":17,"name":18,"slug":19},{"id":21,"name":22,"slug":23},{"id":58,"name":59,"slug":60},7,"Foreclosures","foreclosures",{"id":62,"name":63,"slug":64},8,"Infographics","infographics",{"id":25,"name":26,"slug":27},{"id":67,"name":68,"slug":69},11,"First-Time Buyers","first-time-buyers",{"id":71,"name":72,"slug":73},34,"Senior Market","senior-market",{"id":75,"name":76,"slug":77},35,"Mortgage Rates","mortgage-rates",{"id":79,"name":80,"slug":81},38,"Move-Up","move-up",{"id":83,"name":84,"slug":85},41,"For Sale by Owner","for-sale-by-owner",{"id":87,"name":88,"slug":89},42,"Featured","featured",{"id":91,"name":92,"slug":93},45,"New Construction","new-construction",{"id":95,"name":96,"slug":97},52,"Luxury \u002F Vacation","luxury--vacation",{"id":99,"name":100,"slug":101},53,"Rent vs. Buy","rent-vs-buy",{"id":103,"name":104,"slug":105},80,"Time-sensitive","time-sensitive",{"id":107,"name":108,"slug":109},81,"Outdated","outdated",{"id":111,"name":112,"slug":113},147,"Internal","internal",{"id":115,"name":116,"slug":117},148,"Do Not Autopost","do-not-autopost",{"id":119,"name":120,"slug":121},320,"Inventory","inventory",{"id":123,"name":124,"slug":125},321,"Agent Value","agent-value",{"id":127,"name":128,"slug":129},322,"Affordability","affordability",{"id":131,"name":132,"slug":133},323,"Buying Tips","buying-tips",{"id":135,"name":136,"slug":137},324,"Downsize","downsize",{"id":139,"name":140,"slug":141},325,"Economy","economy",{"id":143,"name":144,"slug":145},326,"Equity","equity",{"id":147,"name":148,"slug":149},327,"Forecasts","forecasts",{"id":151,"name":152,"slug":153},328,"Selling Tips","selling-tips",{"id":155,"name":156,"slug":157},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":159,"name":160,"slug":161},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]