Steeply Rising House Prices Still Haven't Caught Up to 2006 Levels

LEHI, Utah - June 27, 2018 - PRLog -- It's a seller's market in pretty much any desirable area throughout the United States. House prices are on the rise and have been steadily increasing since 2012.

So, does that mean the US economy has recovered from the subprime mortgage crises of 2008? Partially.

One of the popular methods for measuring the US housing market is the Case-Shiller index, which surveys repeat sales of homes on a nationwide level as well as in specific municipalities.

The most recent Case-Shiller data shows that, although significant rebounding has occurred throughout the country, home prices nationwide are still 14% less than when they peaked in 2006. The Case-Shiller indices that measure specific municipalities found that only three - Dallas, Denver, and Seattle - have surpassed their 2006 peaks. Other cities, typically the ones most impacted by the 2008 crash, still have a long way to go to recapture their previous high values, especially when adjustment is made for inflation of the 12 years since those peaks. Las Vegas is still 47% below its all-time high in 2006.

These housing price indices are commonly used by investors, economists, and others to understand the health of the real estate industry in the United States. The data can also be used by regular homeowners to determine whether it's the right time to buy.

Although the real estate market has been surging ahead for close to six years, fears exist that there might be a correction, or even a bubble. Rising interest rates, as already experienced recently and as forecasted by the Federal Reserve, should slow the rate of increase of home prices. Regulations now in place on the lending industry may prevent a major catastrophe as was experienced a decade ago.

For more information about the United States real estate industry, including how to understand price trends and learning how to buy and sell real estate as an individual homeowner, visit the real estate section of Prosperopedia.com: http://prosperopedia.com/real-estate/