Current Housing Bubble speculations from Wall Street market analysts are whirling about suggesting that the Nation's real estate industry is over blown.
Current Housing Bubble speculations from Wall Street market analysts are whirling about suggesting that the Nation's real estate industry is over blown. Concurrently, the National Association of Realtor's chief economist, David Lereah, has released several reports evaluating real estate housing, demographics and other characteristics of the national real estate marketplace. With the current U.S. economic environment, it is agreed that there are reasons for concern - the increasing debt of the nation, fast-rising home prices in certain markets, an increase in specific markets' home-price/income and home-price/rent ratios, a rise in ARM mortgages and other loose lending and speculative buying practices. Yet these factors are balanced by the nation's large group of first-time homebuyers and investment property / vacation home buyers.
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First-time homebuyers account for 4 out of 10 home purchases, providing fluidity for existing owners to trade up or down, as well, one-third of all residential transactions in 2004 were investment property and vacation homes bought in order to diversity individual investment portfolios, to increase income through rentals and for family retreats and vacation uses. For Summit County Real Estate these factors have enabled properties to continue to maintain the requirements for appreciation. Summit County's real estate market progresses diametrical to those indicators of a real estate market headed for a bust. For example, Summit County real estate has increased in the number of home sales, property appreciation is at or above historical averages, properties are selling at record pace, and the Summit County community has and is projected to continue a healthy, steady economic growth which spurs more jobs and therefore a stable housing market. Lereah states, "...this is the Golden Age of real estate" while Summit County property owners refer to it as the new "Gold Rush".
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