The housing market is a concern for many Americans, we keep an eye open for any indicators that the sky is falling. Despite what appears to be happening in other markets, the housing market looks good!
Financial gurus have warned that there would be a stock market correction coming. Experts in the currency markets have been watching the value of alternative currencies for several months.
In contrast to other markets, three major players in the housing market are saying we should be okay.
Ralph DeFranco, Chief Economist for Arch Capital Services Inc. stated that the typical warning signs of a housing bubble are “not present.”
Liu-Down Chief Economist at Genworth was quoted as saying, “The bar for a housing bubble is higher than just prices being above some fundamental value. There must be a widespread behavior change as well such as higher levels of fraud and speculation.”
Fitch Report – “US home prices are on track for a 5% nominal gain for the 4th consecutive year, returning national prices to their highest level since 2007. The growth has been driven by historically low mortgage rates and unemployment plus solid population and personal income growth rates…a meaningful correction should only be triggered by an unexpected economic shock.”
What’s driving the market?
It may seem that speculation has driven some markets over the last year. We’ve seen gains similar to what we saw prior to 2007. The market seems to be driven by a desire to own a home.