“Analyzing home price levels relative to fundamental prices leads us to conclude that there is no need to fear a bubble for at least a few years to come, if at all.”
Mark Flemming, Chief Economist, CoreLogic.
We have gone through a painful rise and fall in our home values in the past 14 years; at least that’s the way we feel here in Lake Arrowhead. Wondering how Arrowhead Woods home prices reacted to the bubble compared to the nation, I’ve excerpted a long blog by Mark Flemming, Chief Economist of CoreLogic. These two charts are a bit like comparing a watermelon to a sunflower seed, but the comparison is comforting.
The top chart is Arrowhead Woods Housing Bubble and recovery … 2000 to 2013… is illustrated with the PRICE CHANGE YEAR OVER YEAR chart. The picture for our mountain resort is fairly clear, Lake Arrowhead has had a tempered rise, fall and recovery, more robust than the nation shown in Mark Flemming’s chart at the bottom. The median price for the past 12 months is $321,500 in Arrowhead Woods.
“One can clearly see that home prices got well ahead of what was fundamentally supported and that there was a significant overcorrection. The figure has been updated to reflect data through the end of 2013 and provides a home price forecast through the end of 2015.” Mark Flemming, Economist.