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Beyond the Media – National Housing Values

The housing market has been fighting some particularly strong headwinds. We have unemployment hovering at the double digit levels, disruptive appraisal requirements, more challenging loan underwriting and in some areas, foreclosure or distress sales exerting their negative influence. Despite all this, the overall results for 2009 were not as devastating as the media would have you believe. Here are a few points to ponder:

1. While falling values predominated across the country, there were only three states where values fell by double digits. Many other states saw only fractional or small declines and a few even saw nominal appreciation.

2. The financial news media likes to focus on the very significant rebound in the stock markets last year yet only rarely reports that over the last 5 or even 10 years an investment in the S&P 500 has gone nowhere. Conversely, all but 6 states have shown appreciation in home values over the last 5 years with many exceeding 20% and a few even totaling over 30%.

3. Over time, home prices in all states have risen at average annual appreciation rates ranging from the high 3′s to over 7.5%.

Subprime delinquencies fall for the first time in 4 years. Subprime mortgages are simply loans that did meet Fannie Mae, Freddie Mac, FHA, or VA standards.  The massive onslaught of subprime delinquencies was one of the main culprits in our housing slump.  So it is great news that for the first time in 44 months, delinquencies bucked their trend and actually improved to the best levels in 2 years.

With Unemployment decreasing, delinquencies falling and home prices increasing, this could shape up to be a much better Spring/Summer housing market than last year.

Today’s housing market represent an opportunity that we will most likely never see again in our lifetime. Don’t get caught up in what you hear in the media, real estate is a long term investment and over time you will see positive growth.

  • About The Author

    Zach Anderson

    Zach Anderson has always focused on driving business growth by focusing on the customer's experience. He has applied this fundamental sales and marketing principle to several industries including financial services and technology. In 2002 Zach founded and launched Cascadia Financial Group, one of the fastest growing mortgage companies in the Pacific Northwest. He sold the company in 2007 to Cobalt Mortgage, the largest privately owned mortgage banking company in the Pacific Northwest. Zach joined the Cobalt team and immediately focused on business development and marketing, his long standing business passion. He began using emerging technologies to connect, engage and transact with the Cobalt installed base of customers as well as new prospects. Zach found immediate success in utilizing video as a medium to deliver his message to all customers as well as strategic partners. He has authored many videos and has successfully created an extensive online community of followers, ...Read Full
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