3 Reasons It’s Not a Seller’s Housing Market | South Salem Real Estate

f you’re considering purchasing a home, but worried that rising home prices mean you’ll pay too much for a house, think again. Just because home prices have risen doesn’t mean it’s a seller’s market out there. Here’s why.

1. Home Prices Aren’t Necessarily Inflated

Home prices have gone up, but have they done so unreasonably? Rewind to 2012, the unemployment rate exceeded 8%, short sales and foreclosures were still rampant, consumer confidence was low, the prospect of job growth was bleak and the general consensus was that the economy was still licking its wounds from the recession. People don’t buy homes when they’re feeling skittish about their job. Fast forward to 2015, job growth is getting traction, the banks are clearing foreclosures from their balance sheets and short sales are dropping. The result? Because the pendulum swung so far in the opposite direction with drastically low real estate prices several years ago, today’s prices in general are a reasonable correction of a settling housing market.

The likelihood for prices to continue to rise by leaps and bounds while credit is still tight is a shot in the dark, as wage strength has still not peaked. Remember, banks still have tight constraints on lending and are especially picky when approving large mortgages. Home prices in many markets are in direct proportion to the local economy. Take San Francisco, for example, where home prices are, without question, exorbitant. The tech industry is having a massive boom, driving prices up. The stronger the local economy, the more people working, the more support housing prices will have to remain strong.

3 Reasons It’s Not a Seller’s Housing Market | South Salem Real Estate | Bedford New York Real Estate | Bedford NY Homes by Robert Paul Realtor.

About robertpaulrealtor 914-325-5758

Realtor in Bedford NY specializing in marketing and selling luxury homes and finding the perfect homes for new buyers. Working in Armonk, Katonah, Pound Ridge, Lewisboro, Chappaqua and North Salem. 914-325-5758 robert.paul@elliman.com
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