Prior to the “Great Recession” that occurred during 2008-2009, the average and median prices for new homes had reached heights beyond the reach of anyone but the most affluent Americans. Consequently, it was difficult for the average American home buyer to find a new home that he or she could afford. As a result, many prospective home buyers had no choice but to cancel new home buying out of their hearts.
The average price of a new home in the United States peaked in March 2007 at $329,400. This has become known as the infamous American “housing bubble,” the bursting of which many economists contend played a big role in the recession. However, referring to this event as the “bursting of the housing bubble” is misleading, because the immense drop in new house prices was not as instantaneous as the figurative use of the gerund “bursting” would seem to suggest.
While the same events that caused the deflating of the metaphorical housing bubble played a role in the recession, the housing industry did not feel its full effects until the average cost of a new home bottomed out at $245,200 in January 2009. But instability within the housing industry first became evident during the summer of 2007, which as only a few months before the stock market crashed in December 2007.
Although there were more affordable new homes to buy during the recession, massive unemployment and the poor overall economy meant that fewer people possessed the resources needed to finance a new home. Thus, many folks who were considering purchasing a new home prior to the recession no longer dared to begin the process of buying a new home – let along luxury waterfront homes for sale along the Eastern Seaboard.
Fortunately, the housing industry had began to exhibit signs of recovery by the summer of 2009. Even though housing prices were still unstable over the next couple of years, the average price of new homes remained between $270,000 and $290,000 pretty consistently. Though most Americans were still not ready to purchase luxury waterfront homes for sale on any coast, the market had improved to the point that buying a new home was no longer out of the question.
In 2014, the housing market is continuing to improve, and in many places there has never been a better time to purchase a new home. The best way to find out if purchasing real estate is right for you is to contact a reputable real estate agent. Who knows, you might be surprised that purchasing luxury waterfront homes for sale might not be as ludicrous as you had previously thought.