Is the Housing Market Overheating?

first_imgHome / Daily Dose / Is the Housing Market Overheating? Sign up for DS News Daily Subscribe Is the Housing Market Overheating? Data Provider Black Knight to Acquire Top of Mind 2 days ago BH&J Index Case-Shiller Demand Florida Atlantic University Home Homeownership HOUSING 2019-01-04 Radhika Ojha Related Articles Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Market Studies, News Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. The Best Markets For Residential Property Investors 2 days agocenter_img About Author: Radhika Ojha Share 1Save The housing market might experience a downturn, but it won’t affect homeownership as much as the last housing crisis did, according to a study titled Where are We Now with Housing: A Report, by the Florida Atlantic University College of Business.The study investigated and compared the current status of U.S. housing at the national level with that of housing at the peak of the last cycle in July 2006. It revealed that while national housing prices were slightly overheated, residential real estate markets were experiencing minimal downward pressure on the demand for homeownership.”Understanding where housing stands today relative to the last cycle’s peak creates more informed real estate consumers and perhaps a less bumpy ride this time around as the nation enters another housing cycle peak,” said Ken Johnson, the author of the study and co-author of the Beracha, Hardin & Johnson Buy vs. Rent Index (BH&J).To compare home prices and their impact on demand, the study investigated scores of the CoreLogic Case-Shiller Home Price Index and the BH&J. It found that housing prices were at 7.3 percent above their long-term pricing trend compared to 31 percent at the peak of the last housing cycle.In terms of downward pressure on housing demand, the study found that at the end of the last cycle the BH&J Index indicated an extreme downward pressure on homeownership with a score of 1.00. Comparatively, this time around, the index reflected a score of 0.039 suggesting only minimal pressure on homeownership demand.”It looks like we’re in for more of a very high tide, as opposed to a tsunami, as residential prices peak in this latest cycle,” Johnson said. “At a minimum, we can expect flatter housing price growth. At worst, we could experience price declines slightly below the long-term pricing trend.”Click here to read the full report. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: Traversing the Legal Tightrope Next: Mr. Cooper Acquires IBM’s Seterus Servicers Navigate the Post-Pandemic World 2 days ago January 4, 2019 2,887 Views Tagged with: BH&J Index Case-Shiller Demand Florida Atlantic University Home Homeownership HOUSING The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

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