Home Value Correction Coming

Author:	Lucas Jones
Source:	Homes Discovered
Date:	September 21, 2006

Even though we have been in a buyers market for some time now and there has been a cooling-off in home prices, more home markets than ever are overvalued.  Climbing interest rates have taken some realty markets into the overpriced terrority last quarter.  In certain overpriced markets, home value growth will be stagnant for some time in order to let income and employment levels rise to catch up.  Many home markets are seeing a decline in the rate of home appreciation.  The bubble may be bursting as represented by slowing appreciation and in some cases flat out home value decline.  The home value corrections will be very gradual but will persist for a long period of time. The more traditional bubble markets such as Boston and California will be most at risk during this time.  Other markets are lagging behind this trend and some are even showing significant appreciation.

Go back