Home prices have nearly reached 2006 levels, but it’s possible that the market is contracting
After 50 consecutive months of annual national appreciation, home prices have risen to within one percent of the 2006 peak.
The U.S. may, or may not, be in the midst of a housing bubble, according to CNBC.
Real estate reporter Diana Olick writes that issues, including short supply, increasing mortgage interest rates, more home equity share, and rising rental demand, are putting upward pressure on home prices. The site reports that 14 of the nation’s 40 largest cities have seen home prices reach new peaks, and that prices have hit new highs in states such as Texas, Washington, and Indiana.
Redfin's chief economist, Nela Richardson, said that the country is not in a housing bubble, though.
"We just have really high prices and a shrinking number of transactions. In fact, I think the market is contracting instead of expanding into a bubble," she said during an episode of the CNBC program “Power Lunch.”