Weekly Special | September 2, 2018

Where Home Values Are Today Vs. The Past

If you have been paying attention to the housing market lately, then you likely know that home values are soaring in 2018.

The average value of a home sold through July in 2018 has been $115 per square foot, which is NEARLY 10% higher than the $105 per square foot average recorded through July of last year.

Now Versus The Past Today’s home values are roughly equivalent to those recorded late in 2005 and mid-year 2010. This means the there remains almost four year’s worth of homeowners who purchased their homes at values higher than what today’s market will bear, but this group of homeowners is shrinking rapidly.

We will continue to see values push higher, as the inventory of homes for sale remains far too low to satisfy current demand.

Higher values will continue to have homeowners gain equity and (finally) put them in a position where they can sell their homes and use the proceeds to purchase another.

Is The Market Healthy?

Values are moving high very rapidly, and while that sounds good for owners, we have a problem forming that needs to addressed immediately (see why here).

The original one-page Weekly Special PDF is still available.