Altos Research found that, while US real estate home prices hit absolute bottom on January 4, 2011, home prices are up 39% since then. Yet every day we see media headlines declaring “weakness” and “disappointment.”
In Altos Research’s view, these attitudes reflect a myopic view of actual market conditions and conflate concerns over the mortgage industry, the otherwise-constrained new construction market, and more broadly, the long-term financial stability of the US consumer with specific current housing market supply and demand dynamics. While these are valid long run concerns, the real-time data paints a much more robust environment than the headlines would indicate. In fact, as of July 2014, home prices are up another 9% year-over-year – the American consumer is anxious to again buy real estate.
Read the entire report on the Altos Research website.