Housing Recession Is Put In The Past As Home Values Reach Peak Levels

In cities throughout the country, including Contra Costa County, there has been positive news to be seen for homeowners that were worried that they would take a big loss when selling their house. Home values have increased substantially in over 1,000 cities, as the values of the homes have either reached or peaked existing home values before the recession hit.

Year after year, the values of U.S. homes has increased by 5.7 percent for 21 consecutive months. Even for homes in hard hit areas, they have also seen an increase in values. It is hoped that by 2015, 527 cities out of the 6,781 cities that Zillow evaluated will have home values fully recover or be close to recovery by 2015.

During the recession, home values had dipped by 10 percent as it sent property sellers just trying to break even on what they originally paid for their homes. Today, people can see profits from the increase of home values as they can make enough to find a new home.

While home prices increase, people haven’t seen too much of a change for home affordability. Mortgage rates are still low although they are slowly rising. Even in some markets where home prices have increased to the point where buyers are having second thoughts, people are still getting the loans they need to buy a property.

Yet affordability may become more challenging in the future. Mortgage rates will eventually increase. As rental fees also reach all time highs, people will start searching for affordable homes in urban job areas, forcing home values in cities to again decrease.

For more information about buying and selling real estate in California, please contact Cary Amo located in Lafayette at 925-818-0880.

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