Are Prices Starting to Top Out? A study titled “the Buy vs. Rent Index” published by Florida Atlantic University (FAU) and Florida International University (FIU) says it’s so. “Housing markets are slowing, suggesting that we are nearing a peak in housing markets around the U.S.—but this is good news, as we are pulling back from the brink, unlike we did in 2007,” says Ken Johnson, a creator of the Index from FAU’s College of Business and an economist.
“Our data indicates that prices are above their 40-year trend, but not significantly so as they were in 2007,” says Eli Beracha, a creator of the Index and associate professor at FIU’s Hollo School of Real Estate. “Rather than a crash, I anticipate slower growth in prices accompanied by longer marketing times for sellers and increasing inventories, which should bring prices back in conjunction with their 40-year trend.”
In Addtion, a forecast by “HouseCanary” projects that 41 of the largest 100 metros will experience a price slowdown this year. Analysts at CoreLogic are predicting an overall stabilization, as well, and economists at Zillow are expecting a “normal” tempering.
Time will tell, but the reason on all of our minds now is, what is the reasoning behind it?
Sources: RisMedia.com, business.fau.edu, housecanary.com, corelogic.com