Trulia: Home Price Recovery Not Shaping into Another Bubble

Recent extreme increases in home values have made many people nervous that another bubble might be occurring. Major metropolitan areas in particular have seen increases of up to 20 percent in home value just this year, and the sudden and rapid rise in home values may seem like housing bubbles. However, experts state that this is not true but instead it is the result of many factors in the real estate market and the economy that are likely to continue and be sustained.

The economy has improved overall and unemployment rates are down which means that the real estate market will naturally rise. The real estate market is also still recovering to the levels that it was at before the housing market bubble and a low inventory of houses on the market along with favorable mortgage interest rates is increasing the demand of these homes. All of these items together mean that the real estate market is rebounding naturally and that it is unlikely to see another bubble.

For more information about the current real estate market and the possibility of another bubble contact Judy Qualls, an expert realtor servicing the Orange County and surrounding areas.