As home values continue to increase at levels greater than historic norms, some are concerned that we are heading for another market crash like the one we experienced about ten years ago. It was recently explained that the lenient lending standards of the last decade (which created false demand for real estate) no longer exist. But what about rising home prices?
Are prices appreciating at the same rate that they were prior to the crash of 2006-2008? Let’s look at the numbers as reported by Freddie Mac:
The levels of appreciation we have experienced over the last four years aren’t anywhere near the levels that were reached in the four years prior to last decade’s crash.
Prices are appreciating at levels greater than historic norms. However, we are not at the levels that led to the housing bubble and bust.