Appreciation started to go crazy as the market heated up during 2004 thanks to the widespread availability of easy credit. It exceeded 12% in December 2004.
The bubble was in full expansion mode during 2005 with appreciation exceeding 36% at the end of 2005.
During 2010, the appreciation rate climbed to slightly positive at 0.6% but this trend ran out of steam during the fourth quarter of 2010.
…We should emphasize that when the rate of appreciation falls, prices are still rising, they are just not rising with quite so much speed. Only when the rate of appreciation goes negative are prices actually falling compared with the previous year. At the current 6.3% (3rd Q 2017) we are a long way above that point.
So no, this market is not like 2005 – thankfully. It took a market like 2005 to create a market like 2008, and we are all better off without such unhealthy market extremes.
As always we are happy to comment on your particular neighborhood or situation. We are always here to help.