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Home Prices Show Biggest Rise in 6 Years

Posted on 2/8/13 at 8:55 pm
Posted by NC_Tigah
Carolinas
Member since Sep 2003
124188 posts
Posted on 2/8/13 at 8:55 pm
quote:

Home Prices Show Biggest Rise in 6 Years
by Richard Davies - ABCNews
Feb 5, 2013


Home prices are accelerating in most local markets. CoreLogic, a real estate data provider, says average home prices rose 8.3 percent in December compared with a year earlier, the biggest annual gain since May 2006. Prices rose last year in 46 of 50 states.

Home prices also rose 0.4 percent in December from the previous month: a healthy increase given that sales usually slow over the winter months.

Steady increases in prices are helping fuel the housing recovery. They’re encouraging some people to sell homes and enticing some would-be buyers to purchase homes before prices rise further.

Higher prices can also make homeowners feel wealthier. That can encourage more consumer spending.

CoreLogic says January home prices, including distressed sales, are expected to rise by nearly 8 percent on a year-over year basis from January 2012, and fall by 1 percent compared with December, reflecting a seasonal winter slowdown.

Excluding distressed sales such as foreclosures and bank short sales, the average home price index is expected to rise more than 8.5 percent compared with the year before.

“December marked 10 consecutive months of year-over-year home price improvements, and the strongest growth since the height of the last housing boom,” says Mark Fleming, chief economist for CoreLogic. “We expect home price growth to continue in January.”

LINK

quote:

Phoenix area home prices rise 34% in 2012
by Catherine Reagor
The Republic | azcentral.com
Feb 7, 2013


The median price of a metro Phoenix home climbed 34 percent in 2012. The rapid rise in home prices over the past 12 months means that many homeowners have regained more than one-half of the value their houses lost during the crash.

At the end of last year, the region’s median home price was $164,000, compared with $122,500 the year before.

Home prices climbed last year for two key reasons: Homes resold by lenders typically sell for lower prices, and foreclosures plummeted 51 percent in 2012 compared with 2011. Also, the supply of houses on the market fell 6 percent, according to a report released Thursday by Arizona State University’s W. P. Carey School of Business.

“Foreclosures and short sales have gone down, eliminating the sources of many cheap homes, so the more expensive types of transactions, like normal resales and new-home sales, went up,” said Mike Orr, director of the Center for Real Estate Theory and Practice at ASU.

LINK
Anecdotes aside.


This post was edited on 2/9/13 at 5:27 am
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35607 posts
Posted on 2/9/13 at 10:39 am to
Lenders lending money for mortgages is what will stimulate the housing market. It doesn't matter what my house is worth if half of the buyers out there can't qualify for a mortgage.
Posted by Lsut81
Member since Jun 2005
80232 posts
Posted on 2/9/13 at 10:43 am to
quote:

Home Prices Show Biggest Rise in 6 Years



Great for me... I bought a foreclosure back in 2011 and with the increase, I'm up 50K over what I bought it at.

I just hope we aren't creating another bubble
Posted by Bayou Tiger
Member since Nov 2003
3659 posts
Posted on 2/9/13 at 7:53 pm to
Right or wrong, I keep holding out hope that in a few years interest rates will be higher, oil prices will be lower, and it will be a better time to buy a bigger house.

In the Woodlands, at least...where prices are currently ridiculous.
Posted by MoreOrLes
Member since Nov 2008
19472 posts
Posted on 2/9/13 at 9:31 pm to
Im going to go out on a limb here.

Loans are still a big problem. Its very laborious even for folks that have enough cash to do the entire purchase.

Also, as most of you know, these numbers are overall and real estate is local.

I think there will be an inevitable slow down when rates hit 6+ percent just because we have all been spoiled.

Also, I fear, the gubbermint will seek to do away with the mortgage interest rate deduction which will crush larger homes.

And if our gubbermint doesn't figure out how to increase permanent jobs .......than all of the above is moot.
Posted by wiltznucs
Apollo Beach, FL
Member since Sep 2005
8973 posts
Posted on 2/10/13 at 9:14 am to
If you are a believer in housing starts/home price increases in terms of consumer confidence as a leading macroeconomic indicator then this is good news..
Posted by NukemVol
Member since Jan 2010
1636 posts
Posted on 2/10/13 at 2:48 pm to
I thought the problem with the housing market was that the average consumer was paying more than what they could afford. Home values increased more than median salaries.

If home prices go right back up to where they were, then have we really fixed the problem. Are we not just reverting back to the bubble?
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