Kurt Spoerle speak to spoerle

Kurt Spoerle - Realtor®
Office: (317) 566-2399
Cell: (317) 366-4000

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After years of wild swings, the U.S. housing market is slowly returning to normal.  The latest forecast predicts home prices will increase by an average of 3.3% annually over the five years ending September, 2017. 

2012 was the first year since 1997 that the housing market has resembled something close to normal.  For the past 15 years, home price changes and sales volume have either been boosted by a bubble mentality or crushed by crash psychology.  From 1998 until the housing bubble peaked in 2006, home prices grew by 5% or more a year.  But once the bubble burst, home prices plunged, falling 30.5% through the end of September 2012.

It wasn't until late 2011 that markets started to stablize.  Between Sept. 2011 and Sept. 2012, average U.S. home prices rose 3.6%.  By then, 62% of the metro area reported rising home prices, up from just 12.5% of all markets during the same period a year earlier. 

By the end of the year, it is predicted that home prices will be heading higher in almost every metro area.  It is expected that Miami home prices will sustain a 10.7% loss over the same period, the largest drop of any market.  A steady stream of foreclosures will keep prices soft in the area during that time. 

All in all, prices are extrememly affordable and mortgage rates are at or near historic lows.  A stronger demand for housing is expected, and the sector should, once again, have a positive impact on the economy. 


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