The bubble burst. Folks who bought land,condos, and homes in 2004 -2008 maybe still be upside down today if in fact they have managed to hold on to the property. So the immediate effect was a general decline in housing prices as now foreclosures and short sales figured into "comps". In addition, as housing slowed many industries that rely on housing for their well being suffered.
But this post is not about the recession and finances. It is about the lasting psychological effect of the crisis. Todays' buyer is looking at housing as an investment. Not so much as an investment in the future for themselves and family but as a financial investment. The notion that housing prices always go up was destroyed. Todays' buyers are, to use a non technical term, goosy. So the question is , Should they be? In my opinion no.
You can draw a straight line , from when numbers were starting to be tracked, to today and see that housing prices increase a national average of 6 % a year. Even after the collapse the bubble bottomed right at the 6 percent growth line. (Now this was not uniform in all markets) Many markets have recovered and are in fact on the plus side with multiple offers once again becoming part of the market. Other areas have yet to recover either partially or fully. But over all the numbers are once again going up as a whole.
As a buyer then what should you look for? Look for a good Realtor. Have the Realtor give you a good market analysis. Be comfortable with the pricing of homes based on the market. Buy with in your means Most of all buy with confidence. If you are looking in our North Georgia area talk to one of our pros here. Enjoy your home and let's hope that regulations are in place to prevent this mess from happening again.