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TH E M R EP O RT | 77 Is Another Crisis Imminent? A recent report parses the numbers to see if the market is poised for more positivity—or if a recessionary repeat is on the horizon. T he national housing market has been known to fluctuate over time, but since the housing bubble in the mid-2000s, the industry has paid extra-special attention to the question of sustainability: Will the current market trend of appreciation continue, or are we headed for another crisis? FitchRatings' U.S. Residential Mortgage Backed Securities Sustainable Home Price Report aims to answer just that by looking at home prices in reference to unemploy- ment rates and inflation-adjusted income rates on a quarterly basis. What they found was that inflation- adjusted home prices on a national scale rose at a rate of 3.5 percent annually, which is in line with previous years. For the first quarter of 2017, the increase in home prices was 1.1 percent, which in its view is sustainable, especially considering the fact that unemploy- ment is down and inflation-adjusted income is growing. This is the first time since 2013 that the Fitch Sustainable Home Price Report was in line with the weighted average na- tional Case-Shiller HPI. There are a few troublesome states that FitchRatings considers to be overheating, namely Colorado, Oregon, Nevada, and Washington, all of which had unreason- able home price growth since last quarter's measurement. Miami also is an area that was home to overvalued properties in the past, but it seems to be leveling out when compared to last quarter, even though houses are still estimated to be priced somewhere between 5 and 9 percent higher than they're actually worth. Fitch attributes this cooling off to a slowing of rental growth, rising incomes, and lower unemployment. Q1 2017 was the city's smallest home-price appreciation since 2012—and only appreciated 0.1 percent in March 2007, according to the Case-Shiller index. Further, luxury condo inventory has increased as an alternative to purchasing, helped along by a limited supply of nonluxu- ry condos and single-family homes. There are a few troublesome states that FitchRatings considers to be overheating, namely Colorado, Oregon, Nevada, and Washington, all of which had unreasonable home price-growth since last quarter's measurement. LET NATIONAL TAX SEARCH THROW YOU A LIFE LINE 130 S Jefferson Street, Suite 300 Chicago, IL 60661 1.888.627.5494 Sales@NationalTaxSearch.com www.nationaltaxsearch.com National Tax Search consolidates Tax Reporting, Flood and HOA Management into one platform, and mitigates/minimizes your liabilities associated with these areas of real estate management: • 24/7 Secured Web-Based Service with optional API Functionality • Timely Reporting & Payment Processing • Assessment Details • Delinquent and Sold Tax Monitoring • Payment Processing • Tax & HOA Certification • Flood Zone Determination, including FEMA Map Overlays • Leader in Property Tax, HOA and Flood Determination THE LATEST