Despite the rise in home values to prices above those reached during the housing boom, Dina Elboghdady of the Washington Post claims there’s no cause for alarm.
“In March, Colorado, North Dakota, South Dakota, Texas, Wyoming and the District of Columbia exceeded their old highs, the mortgage firm CoreLogic reported Tuesday based on its own price index. Still, there’s no reason to fear a price bubble in those markets, said Mark Fleming, the group’s chief economist.”
“Increased demand for homes leads to price growth, especially when the supply is tight. ‘You only need a little positive price appreciation and strong demographics going in your favor in those areas to surpass the prior peak,’ Fleming said. ‘None of those were bubble markets.’”
Here’s a look at CoreLogic’s analysis of peak-to-trough declines nationwide: