Corelogic just released some exciting news from the national housing market: Home prices are back on the rise! And this is certainly a trend we are seeing in the New Albany area as well!
The real estate data provider reported that home prices increased 0.9 percent in January after falling 0.1 percent in December.
And this is indicative of a larger trend, Corelogic reported. After all, over the last 12 months, prices have actually risen a total of 12 percent, which is the biggest year-over-year gain in over eight years!
Home sellers are sure to be encouraged by this recent development because it means that they have a better chance of getting the price they want for their property.
Housing Market Gaining Strength, According to Recent Data
Here’s an overview of recent activity on the national housing market:
- Although home prices increased, total home sales actually dropped in January. The National Association of Realtors reported that sales dropped to their lowest level in 18 months.
- However, the total number of available homes for sale remained low, which is why experts believe prices increased, at least in part.
- The average rate on a 30-year mortgage showed a 1 percent year-over-year increase, which means that home buying costs are a little higher.
- Meanwhile, builders started working on 16 percent fewer homes in January when compared to December. That marks the second straight month for decline.
- Despite recent increases, national home prices are still 17 percent lower than when they were at the peak of the housing market bubble in April 2006.
- In three states (Louisiana, Nebraska and Texas), prices have set highs. Meanwhile, in 19 additional states, prices are within 10 percent of their peaks.
- Those states with the largest year-over-year price gains in January were: Nevada (up 22.2 percent), California (up 20.3 percent), Oregon (up 14.3 percent), Michigan (up 13.7 percent) and Georgia (up 13.4 percent).
- Mississippi was the only state to show declines in home prices.
Homes With Negative Equity are Decreasing
Also recently, Core Logic reported that a total of 4 million U.S. homes returned to positive equity in 2013.
This means that the total number of mortgaged residential properties in the country is now at 42.7 million!
Meanwhile, roughly 6.5 million homes (or about 13.3 percent of all mortgaged homes in the country), still had negative equity by the end of 2013.
The decrease in homes with negative equity is another piece of good news for home sellers because it means that home prices throughout the community will be on the rise! And that is sure to affect the price they can get for their own property.
Your New Albany REALTORS®
Please contact us, Kate & Tony Thomas at 614-939-8945 for valuable resources for buying or selling your home, to schedule a showing, or with any questions you may have about real estate in New Albany, Ohio.
Until next time,
Kate & Tony
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Home buying fervor has driven home prices to their largest annual gain since 2005, according to a recent article in the Wall Street Journal.
Evidently, home buyer interest – fueled by low mortgage rates as well as reduced inventories – helped drive prices up in 2013.
Now, experts are saying that home buyers and home sellers can expect price gains to level off in the wake of the home buying frenzy.
Key Statistics For National Home Buyers or Sellers
According to the Standard & Poor’s/Case-Shiller price index, U.S. home prices increased 11.3 percent year-over-year during the fourth quarter.
Meanwhile, the Case-Shiller index that measures home prices in 20 major metropolitan areas reported that prices increased 13.4 percent during that same period of time.
And another index, which is calculated by the Federal Housing Finance Agency, reported that prices increased 7.7 percent, to an eight-year high.
More News You Can Use
Here’s what else real estate analysts recently reported about the national housing market:
- Home priced decreased 0.1 percent from November to December in the 20-city index.
- That marked the second straight monthly decline.
- Experts noted that the monthly declines during the fourth quarter were actually the smallest for that period in eight years.
- Meanwhile, in January, sales of previously owned homes dropped 5.1 percent from a year earlier, according to the National Association of Realtors.
- Home builders across the country reported increased profits in recent months. For instance, Luxury builder Toll Brothers said it saw a 21 percent year-over-year increase in its average sales price during the quarter ending in January.
- However, the builder also reported that new contracts for homes during that same quarter decreased 6 percent year-over-year.
- Meanwhile, all 20 cities reported annual gains last year, including Las Vegas with the largest at 25.5 percent and San Francisco following close behind with 22.6 percent.
- Across the US, home prices have increased 21 percent after bottoming out in early 2012.
- Home prices, which dropped 35 percent between 2006 and 2012, now are 21 percent below their previous peak.
- Now, home prices are at the levels they were in mid-2004.
Experts say that the rising home prices are good in one sense, although they may also curb home buyer activity as homes become increasingly less affordable.
Still, in the long run, the leveling out of price gains is a good thing because it means a more stable and robust housing market.
Your National Real Estate Experts
We hope you stop by our blog again soon to get the latest information on national housing market activity.
We’re your national real estate experts and we’re here to help you make an informed decision on the market as a buyer or seller!