The 20th century’s Great Depression is naturally remembered as the harshest period of sustained economic failing of the modern age. While the unemployment rate has been alarmingly high in recent years, the true opus of the new millennium’s Great Recession has been the downfall of the housing industry and the demise of property values.
When you compare the numbers, adjusted for inflation, to the market in 2008 and 2009, strictly speaking, the housing market has taken a much greater hit in recent years. This is largely due to the cost ratio of housing; where food was once the highest expense for families, now housing costs trump the monthly paycheck dole-out.
In the years of 2008 and 2009, the United States lost nearly $15 trillion in housing value and $34 trillion in global wealth. According to the Associated Press, as of March 2013, the United States had regained nearly $16 trillion of that once-lost value. Depending on the metrics you use, the United States has regained all or most of the lost equity.
While it’s wonderful to have those dollars back at work in the economy, the one still-existing drawback of the strengthening housing market is that homes are now being priced above market value. In order to regain that $16 trillion in equity, homes are being sold above value and have priced qualified buyers out of the market.
In 2013, a sense of urgency drove traditional buyers hoping to take advantage of still-affordable home prices and historically low mortgage rates. Buyers found selection limited and were often forced into bidding wars with investors and other buyers who paid cash. Sellers reaped the rewards in terms of quick sales, often above the asking price.
According to MSNBC, the housing recovery has caused home prices to rise in 225 of the 276 cities tracked by Clear Capital, a provider of real estate data and analysis. Market observers agree that home prices will continue to rise in 2014, but at a slower, more steady pace compared with historical trends. We can expect an overall increase of four percent.
With all of the changes occurring in the real estate market, Starkey Mortgage (WR Starkey Mortgage, LLP NMLSR# 2146) believes that now is the perfect time to purchase a new home in Atlanta, before rates and values further increase. When choosing Starkey Mortgage to provide you with your new home loan, you can expect on-time closings and very competitive rates. Starkey exercises controlled growth and works closely with new home buyers and builders to give them an assured experience. Local processing, closing and underwriting allows the company to have full, hands-on control of each loan and delivers exemplary customer service, which is the philosophy behind the company’s motto.
For more information on obtaining a home loan from Starkey Mortgage, please contact Regional Manager Doug Casbon (NMLSR #544324, Georgia License #33169) at email@example.com, call 678-350-9020 or visit www.StarkeyMortgage.com.
Equal Housing Lender. 7000 Central Pkwy NE, Suite #1440, Atlanta, GA 30328. Branch NMLSR #909552, Branch License #60841. Phone: 678.350.9020.