It’s NBA Playoffs time, and what better way to discuss this week’s headlines than making a comparison between real estate and basketball. After all, there’s no more appropriate term out there in the lexicon to describe what is going on in the real estate market than “rebound.” At least according to TIME, who says, “This Housing Upturn Looks Like The Real Thing.”
Housing has been putting on a full-court press over the past several months, and looks to be on a winning streak for many years to come according to the CoreLogic Case-Shiller Home Price Indexes. They estimate a 7.3 percent increase in home prices last year, and an expected rise of 3.9 percent through 2017.
Southern California is enjoying a surge, with prices up overall, says the L.A. Times, as are local markets throughout the state according to the Ventura County Star and the Sacramento Business Journal.
And with a market that has turned so quickly from air ball to slam dunk, there is the inevitable bubble talk. Bloomberg says “U.S. spring homebuying season has been marked by a frenzy of demand fueled by the Federal Reserve’s drive to push down borrowing costs, a scarcity of listings and Wall Street’s new appetite for foreclosed homes.”
But Business Insider counters there won’t be a bubble because “home prices are undervalued,” expectations of home prices are “more moderate this time around…there isn’t an overwhelming presence of ‘less sophisticated investors’…and credit conditions are tight.”
Finally, all eyes have been on San Diego this week for the Urban Land Institute’s (ULI) Spring Meeting, which produced at least one important housing analysis about Generation Y, who they contend are “a potential ‘game changer’ in the U.S. real estate market…because of their preferences for downtown living, often in rental apartments with easy access to walkable neighborhoods and public transportation.”
Of course, if you listen to USA Today, this group is a bunch of “super savers” who invest young and are driven by early retirement. Either way, we are in for some interesting times in the next few years as these rookies make an impact on a real estate market currently populated by veteran buyers and sellers.
Which piece of news is scoring big with you this week?