US still in midst of real estate recovery
Posted on Monday, July 21, 2014 at 9:47:26 AM
The recovery isn't over yet. Since the Great Recession, the U.S. housing market has been steadily climbing back toward normal, but recent reports indicate that this positive growth is likely to continue for some time before all segments are back at their previous highs.
According to Zillow, U.S. home values ticked up 6.3 percent on a yearly basis in the second quarter of 2014. Even so, the pace of home value appreciation is slowing down, and the recovery is probably only in the middle stages. This means it may be some time before all markets can start building equity again.
"But there is a silver lining as we navigate these tricky middle innings of the recovery," explained Zillow chief economist Stan Humphries. "Because home values remain so far below their peak levels in so many areas, it is still possible for buyers to find bargains. This will be critical to maintaining home affordability over the coming years, especially as mortgage interest rates rise."
At the moment, affordable residential financing rates can help many people find properties. In addition to this good news, other economists support the findings by Zillow.
According to analysts with Bank of America Merrill Lynch, the next few years could see home prices stagnate, The Wall Street Journal reported. This could push the peak back several years.