Friday, March 2, 2018 / by Carl Gentile
Are Palm Beach County Home Values Really Over Inflated?
Are Home Values Really Over Inflated?Time and time again we hear "we want to wait until next year when home prices drop" - who said home prices are dropping in the Palm Beach County real estate market? Last week, the National Association of Realtors (NAR) released their most recent Existing Home Sales Report. According to the report:
Seventy-one consecutive months of price increases may have some concerned that current home values may be overinflated. However, at the same time, Zillow issued a press release which revealed:
Here are two graphs that help show why home prices are exactly where they should be. The first graph shows actual median home sales prices from 2000 through 2017. By itself, this graph could heighten concerns as it shows home values rose in the early 2000s, came tumbling down and are now headed up again. It gives the feel of a rollercoaster ride that is about to take another turn downward. However, if we also include where prices would naturally be, had there not been a boom & bust, we see a different story.
Bottom LineBased on historic appreciation levels, we should be very comfortable that current home values are not over inflated. Remember when the housing bubble happened not only did we have drastically rising home values, we had speculation and mortgage fraud. So you might want to think twice when you mention you are going to wait until next year when prices drop... you might end up paying more for your property. |