Will Current Prices Make Housing Bubble Possible?
With housing demand and prices simultaneously increasing, the housing bubble becomes the talk of the town. It can’t be helped! Currently, the U.S. Home Price Index is experiencing its fastest annual acceleration since April 2014.
Annual Appreciation
The Federal Housing Finance Agency (FHFA) noted that the annual appreciation since 1991 has averaged 3.8%. However, the latest 2020 appreciation numbers from 3 reliable source shows;
- FHFA: 7.8%
- CoreLogic: 7.3%
- Case-Shiller: 7%
Needless to say, the jaw-dropping house appreciation seems to have gone out of control. However, let’s take a look at the reasons for this huge jump.
The COVID-19 Impact on House Price
The pandemic has changed the way people see what is needed from their homes. People started to reconsider whether their current home is able to fulfill their needs under the “new normal
