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.”
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.
quote:50% cash deals is a stunning stat.
Investor home purchases in the Phoenix area began to decline in the fall, Orr said. Overall, about 36 percent of all home sales were cash deals last year. Early in 2012, cash deals made up more than 50 percent of all transactions.
quote:This summer we were looking at 3000-3500 sqft east of Kuykendahl and south of Research (non-Creekside) and didn't see anything close to that range.
You can easily get an average home for less than $100sqft.
then have we really fixed the problem
quote:Maybe "overpriced" was a bit strong. I just feel like the odds are that the prices will be lower in two years rather than higher.
Agree to disagree I guess but the woodlands is not overpriced when you look at similar upperclass neighborhoods with great schools nation wide.
quote:I have also been in Creekside for 4 years. My oldest just started Kindergarten, so this summer we were looking at moving north before either of them started school - for continuity. The combination of higher than expected housing prices and my son getting into the private school we applied to made it an easy decision not to move just yet.
What area are you in today. I've been in Creekside for 4 years. I hate to move as my kids will start school soon but I wouldn't mind a larger home and yard.
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?
quote:That's gong to depend on location.
Well I seriously doubt that they are going to reach December 2005 levels in terms of real prices any time within the next decade.
That's gong to depend on location.