Valley housing market showing improvement, experts say

May 31, 2013 12:00:00 AM PDT
Homebuyers are returning to the market but rising prices have some people concerned another housing bubble is forming.

The Valley housing market is showing signs of recovery. Houses don't last long once they're listed.

Scott Jett and his wife and their daughter just moved into homes. They found the Valley's low housing inventory made for a competitive process.

Rising home values have some worried about a "double bubble" where prices again reach an unsustainable level and then collapse.

But Don Faught doesn't see it that way. He's president of the California Realtors Association.

"The dynamic we had before when things exploded or imploded was the fact they didn't have skin in the game. They were not putting money into the homes. They wouldn't put a down payment," Faught said.

Realtors like Don Scordino say the dynamic has changed.

"This time people have to quality for fixed rate mortgages. 6-7 Years ago people were not even having to quality for adjustable rate mortgages," Scordino said.

People are happy to their home values rise but Faught worries it's happening too quickly. He says it's not good for the recovering economy.

"We do not want to price people out of this market," Faught said. "We're kind of anticipating interest rates, right now it's about four percent. They're going to go to about five percent next year."

Faught told local realtors he expects housing prices to continue to rise this year.


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