Experts are saying that after a decade of a repeating bubble-and-bust cycle, the housing market is stabilizing with supply and demand. This means that prices are going up at an acceptable rate which is good news because the volatility was not good for the economy.
In 2015, home prices hit numbers last witnessed at the peak of the housing bubble. This was after 4 years in a row of increases. In fact, the median went above $600,000 for the 1st time in 8 years.
Specifically, at the end of 2015, median home prices were up over $187,000 from the worst part of the recession. This helped those who purchased homes 2 or 3 years ago to see gains from the market. In fact, as an example, a 2-bed, 2-bath home in Sane Juan Capistrano that was purchased for $475,000 in mid 2013 would now be worth at least $70,000 more (According to Zillow/Redfin). Even bigger jumps were seen in The City of Orange where the average home increased in value by over $130,000.
Another good sign of stabilization is that foreclosures, short sales, and bank-owned homes have nearly disappeared. In Orange, 1 in 8 homeowners lost their homes during the depression, so this turnaround is very encouraging. Overall, its safe to say that the housing market is doing better and experts predict it will only improve over the course of 2016.
Thank you for reading our latest article. If you, or someone you know, are thinking about buying a home or selling a house, then please do not hesitate to contact us The Wise Team. We can be reached by calling 714-698-WISE (9473).
We look forward to hearing from you!