What is really nice to know is that the market is still way below the market peak in 2005 when the median price was nearly $400,000. With current home lending standards being such that buyers have to qualify for home purchases based on current income, assets, credit scores and employment and no artificial lending criteria, I think this nice steady price appreciation is here to stay. Nothing funky about the availability of lending exists -- like 10 years ago when buyers routinely claimed income on a loan application whether true or not. Or when the irresponsible "pick-a-payment" loans were available that created this fake low house payment. That's all gone and I don't foresee it returning.
In my own transactions, I am seeing many folks who purchased a home during the bust take this opportunity to sell their current homes and move-up into a larger home, downsize, or move into a different neighborhood. I am also seeing a lot of downpayment gifts from parents to their kids, allowing them to purchase their first homes. Interest rates are still low, hovering just around 4%. Generally as we approach the end of the year, the market slows a bit and the median price tapers a bit...my business volume has not slowed in the least, so I will be interested to see if the low interest rates motivate buyers to remain motivated to buy through the holiday season.
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