Housing Bubble Talk Continues
The USA Today and other major media publications continue their assault on the supposed housing bubble. Since 2001 there has been talk of housing bubble bursting. We do not deny that the housing market is slowing, but the crys of "the bubble is going to burst" are overdone.
There may well be pockets of the country where housing prices have become overheated - California, Florida, Washington DC come to mind. However, in Georgia, we have seen about a 6 percent increase over the past year. 14 percent over the past 3 years. This would hardly qualify as a housing bubble.
Yet, we continue to hear clients who are going to wait for the housing bubble to end before they make their home purchase. For those who have been waiting for this since 2001, they have missed out on some excellent capital gains. They have also missed the opportunity to enjoy home ownership.
The fact of the matter is this - the national medain house price has not declined in a single year since the Great Depression of the 1930's. There have been very few occasions where we have seen even localized declines. These declines have almost always been accompanied by sharp prolonged job losses. There is nothing on our economic horizon to suggest that this is a problem.
We at Primacy Mortgage believe that you try to ignore the meda's attempt to negatively influence our strong real estate market. Their prophecy may be self-fulfilling in the short term in that it may cause some weakening in the housing market, but in the long term, the economic indicators point towards continued apprecation.