According to Realtor’s Magazine, the residential real estate market, is on track for its best year since the peak of the housing bubble in 2006, but as Smoke is quick to point out, this time it’s not a housing bubble.
That’s because job growth is fueling the most recent climb in demand for homes. More than 3 million jobs have been created in the past 12 months.
As job growth increases, demand has followed. Homes are selling more quickly. We have had 32 months in a row of existing-home inventory at less than a six months’ supply and are seeing above-normal price appreciation. Median home prices rose 9 percent in April year-over-year nationally. Home owners are seeing strong gains in equity lately.
At the real estate’s market current level of growth, total home sales this year could near 6 million, which is near the peak seen in 2006.
Source: “Midyear Report: The Housing Market Is on Track for Its Best Year Since 2006 (and it Ain’t a Bubble),” realtor.com® (June 10, 2015)