According to the housing price index of the last 30 years provided by Office of Federal Housing Enterprise Oversight(OFHEO), the cycle of real estate housing market in the U.S is about 14 to 18 years. The subprime mortagage crisis in 2008, the real estate market started to declin in 2007 and hit rock bottom around 2012. The following year the market started to recover and continued to grow. The nation's average housing price went from $155K in 2012 to $178K in Jan 2015.
Year 2015 is the 10th upward cycle of real estate market since year 1818. Based on the year 2014's market trend, housing price was going up continously in the first 2 quarters. In the 3rd quarter, it went down a little bit but then up again in the 4th quarter. In 2015, so far the market is keeping a good start. January's market growth is 5.4%. Zillow predicts that in 2016 January, the housing price will go up by another 1.9% compared to 2015 Jan, very likely to hit the $200K mark again.
Analysits believe that the reason for strong growth of real estate market in America is due to its economic growth and the raise of average salary. In addition, the credit market which investors concern won't likely enter the state of deflation, in contrary, the Feds has been keeping the loan interest at a pretty low level, which is around 3.6%. The capital liquidity of the credit market is still high, relatively less restricted for fixed asset loans.
Whether you are buying a house for your own or as an investment, you should do thorough research based on your situation. Don't try to time the market.
