May Housing Market Update

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The monthly housing report is finally out for May. I am glad to see the inventory lower than last year. This is one item that has to be inline for the market to return to normal. Hopefully we will continue to see this trend in the market. Looking at the prices, we are below 2005 prices. This is very unfortunate for everyone that has bought at the top of the market in 2005-2006.

Now, for those homeowners that have purchased prior to 2004; Don’t cry too much… you are still seeing approximately 14% appreciation. Fourteen percent!!! That falls inline with normal appreciation or 4-6% a year. Unfortunately, some homeowners took advantage of the steep appreciation and cashed out on Home Equity line of credit. So in this case, you over spent your appreciation.

Just remember, in a normal market, homes will appreciate at very similar rate as your income. When they don’t parallel each other…you’re gonna have problems.

Have a great day…things are really picking up around here.

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