Despite the cyclical downturn the housing market experiences during winter, home prices continued to rise in the first quarter, indicating the overall health of the real estate market. The chart shows the Case-Shiller Home Price Index, which measures the 20 largest markets in the nation. Since the housing bubble burst in January of 2006, home prices have continued to decrease, with the lowest rates in January of 2009. Since then we have seen growth, but have yet to be back in positive gains until 2013. In 2014, we have continued to grow, with home appreciation steady. We can see the artificially high home prices from the housing bubble in 2006-2007, and note that levels today are approximately 17% below peak home prices. The market is normalizing, providing appropriate growth that helps maintain realistic home affordability. We can expect consistent growth similar to historic levels compared to housing bubble increases.
We see a similar pattern reflected in Wisconsin home prices. See First Quarter Home Prices Continue to Rise for more information on rising home prices in our state.
Categories: Quarterly Newsletter