Home Prices Up 6.6% Nationwide, Even Higher In Southern California, Is there A Bubble…

This is a question, previously only asked by industry insiders, until the Great Recession made “bubble” a household word. Although Southern California’s overall appreciation has hit as high as 10% a year recently, local economist Jonathan Lansner comments that this market’s run up has been fairly mild. His exact quote, “Please do not forget how insane last decade’s real estate insanity was. One hint is that in the five-year period that ended in 2005, local home appreciation was averaging 18% a year! That’s almost twice today’s upswing.

So the current run-up looks pretty meek, comparatively. That doesn’t mean there may not be a price adjustment, likely sprung from oncoming market conditions such as year-end demand and slightly higher interest rates. In fact, 58% of current homeowners see a drop in home values coming. That knowledge or perceived knowledge doesn’t seem to be slowing sales or demand for inventory. Likely because millennialsl driving the market are still entering the market and the older M Generation will be looking for move ups and larger homes due to growing families and careers, in the next 3-5 years. Inventory is in fact, nationally, according to Keeping Current Matters Blog, at a 30 year low. Millennial generation not the “renter” generation previously thought. Many have overvalued the Millennial idealism and commitment to lifestyle over career to mean renting. But statistics offer the opposite view: 34% of homes purchased in 2017 were Millennial buys. Once first time younger buyers and the older Millennial start layering their purchasing look for an even more active and varied market.