AgentIndustry News

Want stable home values? Go west, young man

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Homebuyers who want moderate, steady price growth and equity can avoid the up-and-down cycles that plague some real estate markets by heading west, according to SmartAsset, a technology company that uses financial modeling to power advice on major financial decisions. “Home appreciation is generally considered a good thing. It means more equity for homeowners, and a bigger payout when the time comes to sell,” SmartAsset said. “But as we learned during the financial crisis, when home values grow too quickly, a boom can quickly turn into a bust. That can lead to vanishing equity, underwater mortgages, foreclosures and a lot of unwanted stress for everyone who owns a home.” The company analyzed home price data from the Federal Housing Administration in 358 of the largest urban markets going back to 1990, and found that half of the top 10 housing markets with the most stable growth over the last quarter century are located in the West. Colorado, Texas, North Dakota, Wyo...