Tuesday, February 12, 2013

Home Prices Up!

According to the National Association of Realtors, home prices are up in 88% of cities in the US.

Here are several explanations offered by different researchers and experts:

1.      An improved job market

2.      Interest rates are still low, though they have gone up too. Last week, one of my buyers was quoted a rate of 3.75% on a rural housing loan.

3.      A smaller inventory of homes in most metros – 21.6% fewer homes are on the market as compared to the previous year

4.      Rising rents

5.      Cheaper foreclosed and short sale homes have been steadily snapped up by investors reducing inventory

Cities with the biggest increases:

  • Phoenix: 34 percent
  • Detroit: 31 percent
  • San Francisco: 28 percent
  • Cape Coral, FL: 26 percent

Lawrence Yun, chief economist for the National Association of Realtors reported: “Home sales are on a sustained uptrend... they are being fueled by a pent-up demand and job creation, along with still-favorable affordability conditions and rents rising at faster rates.”
Sellers… are you reading this?

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