Unless you experienced it first hand the housing recession is easy to forget. Lots of people lost their homes. Most have recovered and some hard-hit homeowners own property again.
Today’s real estate market is a “good news” “bad news” story with high demand and not enough homes for sale.
The graph reflects the rise in the average and median single-family home sale prices since 2010.
In Greater Cincinnati, single-family home sales ended 2006 with an average sale price of $181,242 and median sale price of $145,000. In 2009 the average sale price had dropped to $152,243 with a median sale price of $124,900. So we have crawled out of the hole and are now seeing sales prices escalate above 2006.
The question of whether home prices could crash again is relevant when you see buyers in bidding wars. The one thing that may deter a major crash is the lack of adjustable interest mortgages. In 2009, most of the raging housing market was backed by low introductory mortgage rates which spiraled up as the housing glut increased. The recipe for disaster.
Still, today’s buyers who assume they can win a bidding war today and sell for a higher price in 2-3 years may be in for rude shock.