After peaking in 2006, the median U.S. house price fell about 30%, finally hitting bottom in late 2011. Since then, house prices have rebounded strongly and are nearly back to the pre-recession peak.
However, conditions in the latest boom appear far less precarious than those in the previous episode. The current run-up exhibits a less-pronounced increase in the house price-to-rent ratio and an outright decline in the household mortgage debt-to-income ratio—a pattern that is not suggestive of a credit-fueled bubble.
Read the rest of What’s Different about the Latest Housing Boom? »
For more articles like this, please visit our Real Estate Investing Blog.
© 2015 by Marco Santarelli and Norada Real Estate Investments. Your Premier Source for Turnkey Cash-Flow Investment Property.