Home Prices Show Biggest Rise in 6 Years | TigerDroppings.com

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NC_Tigah
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Home Prices Show Biggest Rise in 6 Years


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 at 5:27 am



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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
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re: Home Prices Show Biggest Rise in 6 Years


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.





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NC_Tigah
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re: Home Prices Show Biggest Rise in 6 Years


quote:

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.
50% cash deals is a stunning stat.

Speaks to your concern about lenders IMO.






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Lsut81
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re: Home Prices Show Biggest Rise in 6 Years


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






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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6133 posts

re: Home Prices Show Biggest Rise in 6 Years


Up 66% here, fun times right now. 4 houses in my hood under construction, nothing under 4000 sq ft or 775k, two are builders personal homes.

quote:

I'm up 50K over what I bought it at.


Ditto






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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
3225 posts

re: Home Prices Show Biggest Rise in 6 Years


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.






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MoreOrLes
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re: Home Prices Show Biggest Rise in 6 Years


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.






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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21107 posts

re: Home Prices Show Biggest Rise in 6 Years


How is the woodlands area ridiculous? Other than property taxes. You can easily get an average home for less than $100sqft.





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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
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re: Home Prices Show Biggest Rise in 6 Years


quote:

You can easily get an average home for less than $100sqft.
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.

Just checked and most are currently listed for $135-$150/square foot. Maybe that is the new normal in that area, but it just felt high to me. Certainly it wasn't a price that I felt was a great time to be making a move just for the sake of upgrading.

It's hard to imagine oil prices staying this high and interest rates staying this low for the next few years, and what would a correction in those two items do to prices in the area? I figured I would just stand pat for now and check back in a couple of years.



This post was edited on 2/10 at 12:45 am


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wiltznucs
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Apollo Beach, FL
Member since Sep 2005
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re: Home Prices Show Biggest Rise in 6 Years


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..





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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21107 posts

re: Home Prices Show Biggest Rise in 6 Years


Agree to disagree I guess but the woodlands is not overpriced when you look at similar upperclass neighborhoods with great schools nation wide. Sure it's a ~10% premium over similar houses in the surrounding areas, but it's still very affordable.





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NukemVol
Tennessee Fan
Atlanta
Member since Jan 2010
1431 posts

re: Home Prices Show Biggest Rise in 6 Years


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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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21107 posts

re: Home Prices Show Biggest Rise in 6 Years


quote:

then have we really fixed the problem


A big difference is mortgage interest rates are nearly half what they were in 2002-2006 when most of the mortgages that defaulted originated. So if you are reducing your monthly payment by 20-25% people can afford to pay more. even if incomes haven't increased much.






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Bayou Tiger
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The Woodlands, TX
Member since Nov 2003
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re: Home Prices Show Biggest Rise in 6 Years


quote:

Agree to disagree I guess but the woodlands is not overpriced when you look at similar upperclass neighborhoods with great schools nation wide.
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.

And if I'm wrong, then that's just an extra two years of saving money towards the next house versus jumping into a mortgage and higher taxes now, which would soften the blow.






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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21107 posts

re: Home Prices Show Biggest Rise in 6 Years


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. With the grand parkway coming in two years, a lot of nice size lots out to the east and west will be comfortable commutes to work.





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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
3225 posts

re: Home Prices Show Biggest Rise in 6 Years


quote:

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 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.

However, I'm glad you mentioned the Grand Parkway. The commute is the main reason that I didn't want to move too far out west, but the parkway might make this a non-issue.






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Doc Fenton
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Member since Feb 2007
50726 posts

re: Home Prices Show Biggest Rise in 6 Years


quote:

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.


I don't think that really gets to the heart of what the problem was.

quote:

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?


Well I seriously doubt that they are going to reach December 2005 levels in terms of real prices any time within the next decade.

Nonetheless, I am in a very general sense sympathetic to your viewpoint here, and as I said in that ZIRP thread I created a couple of months ago, I think Bernanke has been making a huge mistake with monetary policy ever since the beginning of 2011, similar to what Greenspan did (with Bernanke's voting support) in 2003.

So is another housing bubble being created? No, I very much doubt that. At the same time, however, I do think that monetary policy is generally causing artificially high asset prices, and that includes housing. The U.S. appears to be running into what I previously thought would never happen--Japanese-variety ZIRP-style problems where artificially high asset prices, low growth, and low inflation become an entrenched phenomenon that acts sort of like a macroeconomic tar baby. It really is a terrible thing to behold.






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NC_Tigah
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re: Home Prices Show Biggest Rise in 6 Years


quote:

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.

Anecdotally, we received an unsolicited cash offer out of the blue >20% over acquisition price on an upper end property purchased <1yr ago.
Not selling, because we love the place. But was basis for the OP.

Obviously as with any investment, YMMV.






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Doc Fenton
Yale Fan
Member since Feb 2007
50726 posts

re: Home Prices Show Biggest Rise in 6 Years


quote:

That's gong to depend on location.


Only if you're talking about a rather specific location, as prices are still about 40% below their Dec-05 highs in real terms.

Even Charlotte & Denver, the best 2 out of the 20 major markets at holding value, are down close to 15% according to Case-Shiller. I would be surprised if housing in those places appreciated by that much above inflation in the coming decade, although I guess anything is possible.

Now certain trendy new developments will always occur on the local level, and there are always boomtowns like Williston, but just in the main, I don't see housing getting anywhere near its old levels anytime soon.

quote:

YMMV


What does that mean?






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NC_Tigah
LSU Fan
Member since Sep 2003
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re: Home Prices Show Biggest Rise in 6 Years


quote:

Even Charlotte



Charlotte is the best?


Well there it is.






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