Lance Lambert at Fortune says it looks like finally the “crazy” is leaving the hot housing market. But don’t think for a second that that means a crash is imminent. Instead, it is more of a cooldown… (Fortune)
What does a cooldown mean? The industry sees cooling off as more of a return to normal…
- “While home prices over the past 12 months are up a staggering 17.2%, CoreLogic, a real estate research firm, forecasts just a 3.2% appreciation coming in the next 12 months.”
Are you are sure won’t be crash? Lambert argues it is hard for a crash to happen when we are still experiencing record low inventory levels…
- “For a housing bust to occur there would likely need to be a supply gut. We’re currently at the opposite end of that spectrum…”
What is the reason for the change? Lambert argues that some of it is a result of would-be buyers simply taking a break because of sky-high prices. Lambert also argues that seasonality appears to be coming back as well. However, Lambert also mentions some wild cards that could throw off this entire calculation…
