Housing Market: Back to 2007 Home Values

Home values in the current housing market may have clawed their way back to 2007 territory as the recovery rebounds, but what most individuals looking at real estate investing want to know is; will it keep going up, and if so by how much and for how long?

The release of a new round of housing data shows home values up almost 7% during 2012, and up 8.1% in January 2013 over the previous year according to the S&P/ Case Shiller Index.

This makes January 2013 the best month for home appreciation since 2006. However, while many have seen their home’s equity return to the 2007 housing market values, a Federal Reserve report shows the breadth of the recovery resulting in U.S. home equity reaching $8.2 trillion at the beginning of the year, with national equity levels jumping by the most in 65 years, according to Bloomberg.

These are certainly great stats for those that have been involved in real estate investing over the last few years, but what does the future hold?

Of course those really wired into housing market changes who have been in the real estate investing industry since the last boom know that most of the best gains were prior to 2006. Currently, even many of the country’s hottest housing markets are still 30% or more below their previous highs in terms of house prices.

Based upon historical housing cycles we still haven’t entered a new boom yet, during which U.S. home prices should at least double again. So expect a new decade of growth with many housing markets driven to incredible highs.

Meanwhile, be sure to be on the lookout for other trends and factors that will drive individual housing markets to grow faster than others such as relocating businesses, jobs and population migration.