Industry News

Can real estate nirvana continue?

HomeServices CEO optimistic, despite some out-of-control price appreciation

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While the real estate market is still rosy, HomeServices of America President and CEO Ron Peltier said it's uncertain whether the market is approaching full bloom. Rock-bottom interest rates, tax law changes in the late '90s, and a growing acceptance of housing as an investment rather than shelter have contributed to this state of real estate nirvana, he said during an Inman News audio conference last week, though he expressed cautious optimism that these good times will continue to roll. Peltier characterized the market as overheated in some areas, with double-digit home-value appreciation as a danger sign. "We do have hot spots in the country where...we have appreciations that might be close to running out of control" and that can be unhealthy for the industry as a whole, he said. "Moderate interest and moderate appreciation is really preferred, even though as investors and homeowners we love to see tremendous growth. We are clearly going to reach a point where we're pricing pot...