Not Too Overvalued

Written by Jim the Realtor

September 23, 2014

SD overvalued again

From an article at wsj.com: 

http://online.wsj.com/articles/how-to-play-the-real-estate-market-before-it-s-too-late-1411333001

An excerpt:

Now is also a good time to buy a home, many analysts argue. The slowing growth in prices makes homes more affordable, even as rental costs inflate for single-family homes and multifamily apartments. Meanwhile, interest rates remain slim. The average rate for conforming 30-year fixed-rate mortgages recently was 4.19%, close to the lowest levels of the year, says HSH.com, which collects mortgage data.  Keith Gumbinger, vice president of HSH.com, says, “Price gains have cooled in many areas, and mortgage rates are lower than they were expected to be this year. The combination is a favorable one, and if it holds, it should provide a solid foundation for home sales this fall.”

Ivy Zelman, founder of Zelman Associates, says the current gloom is overstated and housing prices will continue to slowly appreciate. “People still believe in the American dream,” says Ms. Zelman, who was early in predicting the housing downturn and anticipated the rebound. “The housing market is lukewarm and will get warmer.”

4 Comments

  1. tj & the bear

    Zelman ought to be a CNBC anchor.

  2. tj & the bear

    Hmmm… actually read the full linked article and had an even greater sense of 2006 deja vu. Wasn’t “get in or be priced out forever” a staple bubble meme.

  3. Jim the Realtor

    Wasn’t it Ivy that first rolled out the neg-am recast chart that made it appear we’d never survive?

  4. Jiji

    Don’t know this guy, but I think he has it basically correct currently.

    a little slow but unless the banks start dumping REO’s in mass again (unlikely they even have enough in the pipe they could release), it will most likely keep moving along.

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