Since April, you’ve probably noticed “For Sale” signs popping up out of the ground in SunCrest. In chatting with neighbors throughout out the community, we’ve been asked, “Why’s everyone moving? Is there something wrong with SunCrest I don’t know about?” Our answer: Nope! Just like tulips emerging each Spring, this phenomenon happens about this time of year, every year.
Unlike other years, however, some media outlets have been reporting we are headed for another housing bubble like we saw in 2007. They credit extremely low inventory, low interest rates, and a buying frenzy among Millennials (those age 35 and under).
During 2007, SunCrest was booming with new construction and in hot markets like ours, it was typical to see a higher premium paid on new construction versus existing homes. During this boom, builders couldn’t build quick enough to keep up with the demand of buyers. This, along with loose lending standards, created higher prices.
Another Bubble Forming?
But are we experiencing a bubble now? CoreLogic, a data driven real estate economics firm, says no, and we think they’re probably right. This infographic breaks down national home prices now, versus the peak we saw in the late 2000’s.
Are we experiencing another bubble in SunCrest?
Definitely not. We got our shovels and dug up SunCrest statistics for homes sold. We took the average of 3 like properties from the first 6 months of 2007 and compared it to the first 6 months of 2015. Pretty startling.
The good news is, we’re not seeing those inflated (dare we say bubble?) prices of yesteryear. However, many residents in SunCrest are still experiencing negative equity. Their property was purchased at the peak and they’ve pulled down the lap bar to ride the roller coaster of rebounding housing prices. On the flip-side, some residents purchased at the bottom and have a bit of equity when the time comes to sell. Whatever scenario you may be faced with when selling, using a team of professionals that has studied and understands the past, will help put you in a good place when it comes time to act on your future.