The U.S. housing market has stabilized significantly since the upsets of the 2007-2011 crisis. After a period of extremely tight mortgage restrictions, lending institutions are again opening up with more reasonable requirements and attractive interest rates.
However, there are a number of variations in the home values from one region of the country to another, with home prices rising astronomically in some areas, and others experiencing a lag in both sales and values. Here’s what new buyers can expect when the look for new houses on today’s market.
Housing Market Overview
Home values continue to recover from the mortgage crisis and recession, with values rising in 236 of 270 cities tracked by Clear Capital. Over the most recent tracking year, prices rose by double digits in some cities, most of which are located in California, Florida, Nevada, and Michigan. Seattle, Miami, Denver, Dallas and even Pittsburgh have all seen sales figures up 10 percent in the past year. New home sales are still lagging, post-recession, but the meager number of existing homes on the market may force increasing sales in the near term. As the job market continues to expand, more homebuyers can be expected to enter the marketplace, lifting both existing and new home sales figures.
Sales of existing homes in the Northeast have shown notable stability in recent years. In January of 2016, sales hovered around a 20 percent increase, across a range of brackets. A stable job market and healthy wages help to make the Northeast one of the most reliable markets in the country. However, sales prices slumped during the recession, and many people held off putting their properties on the market. Now they are beginning to add to the inventory of homes for sale, and buyers are quick to make an offer for properties in popular areas.
The Midwest’s industrial base took a devastating hit during the recent recession, but cities are gradually seeing a recovery in this area of the country. Homeowners could be expected stay put in such a difficult economic environment, and stringent credit requirements also put a damper on the housing market during recent years. However, as industry recovers, the housing market is seeing gradual improvement. The increase in rents is also beginning to encourage people to looking into purchasing homes again. Both new and existing homes are poised to see increases in sales, as millennials start their families and retirees look for smaller residential properties.
The housing market in the southern states has lagged significantly behind other areas of the country. While this fact makes home prices in the South among some of the most affordable in the nation, it also means that values have tended to rise more slowly than in other areas. Individuals moving to other areas of the country for employment may find it difficult to get top dollar for their southern properties. However, in some areas, new retirees are buying up affordable homes in warmer climates where they can better enjoy their golden years. Florida is of course, on their list of possible locations, and the state’s recent foreclosure problems have largely been overcome. South Florida/Miami area property values have risen dramatically over recent months, leaving some experts wondering if a bubble will soon cause the high prices to return to earth.
California and Nevada saw the worst of the mortgage crisis, and some areas are still healing from those difficult times. Homes in the coastal California region have seen skyrocketing values and a brisk market that has buyers competing for properties as soon as they are listed. Homes for sale in Utah and Idaho housing are expected to become the hot markets in the coming year. Sales figures of existing homes throughout the West are up from 16 to 20 percent in most price ranges. New homes are not faring so well, with volatile sales numbers from month to month, but this could change quickly with lean inventory of existing homes that are available for sale.
Housing experts foresee continued gains in the housing market, with wage increases and reasonable interest rates helping to fuel the marketplace.
About the author: Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most her time hiking, biking and gardening. For more information on Saratoga Springs homes for sale in Utah, check out Edge. Contact Brooke via Twitter.