Home prices increase 13.7 percent from 2012
With November's Case-Shiller Index increase, 2013 could be the best year for home-price gains since 2005.
The composite 20-city home price index, a key gauge of U.S. home prices, was up 13.7 percent in November from a year earlier. All 20 cities have posted year-over-year gains for 11 straight months.
Prices in the 20-city index were 0.1 percent lower than the prior month, but that's mostly due to the weaker winter selling season. Adjusted for seasonal variations, prices were 0.9 percent higher month-over-month. Nine of the 20 cities posted a monthly declines, though on a seasonally adjusted basis priced no city saw a drop.
Though home-price gains have been strong, the Case-Shiller data are lagged. Many expect increases to moderate this year.
"The rapid gains in house prices over the past year are the result of low inventories of homes for sale and strengthening home buying activity. But a slowdown in the pace of house price appreciation is in store for 2014," said Paul Diggle at Capital Economics. "We are anticipating a meaningful increase in the supply of homes for sale. The survey evidence suggests that rising prices are motivating more owners to list their homes. And judging by the recovery in housing starts, the inventory of new homes for sale is also set to rise strongly."
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I can't believe that people are still claiming the housing price appreciation is the result of some kind of government conspiracy. Why can't good news just be good news sometimes?
too many people, not enough good paying jobs (anymore), 2 class of people now high and low, everything is so expensive, ingnition switch on a 2008 silverado installed with 2 new keys $600.00. thats what I need to make everyday to get ahead, get by on $300.00 a day-whow cares. So if a single guy burns up money like that, how about a family of 5. I am a carpenter and look out, my job is to transfer cash from your accout to mine-never the other way around.
Good news like this triggers higher mortgage interest rates, as the new "anticipation" that houses will appreciate in value triggers an increase in demand for money relative to the supply of money. Supply & demand theory, in economics, would suggest that the price of money (interest rate and/or closing costs) would increase.
I was reading some of the comments regarding these types of reports being "misleading" to say the least. It is funny that the stock market took quite the tumble the past several trading days and then all the sudden we get a nice housing report today... hmmmm? Damage control maybe? Either way, not much we can do about it except to be skeptical. After the 2008 mortgage crisis, and with the ability to post and share content with just a few clicks around the world, I think there is a much larger proportion of "public awareness" that maybe we all should NOT just assume that homes will appreciate over time. They are actually coming out with insurance products that protect your equity, based on home value indexes by region. One such company is called EquityLock. We insure our homes against hazards by purchasing home insurance, we insure our money in banks through FDIC, our health, etc., so why not insure the equity position in our homes? I am curious to see if these products will sell.
Along with rising interest rates, there is an interesting trend that occurs (which I have noticed as a loan originator). As interest rates rise, a larger proportion of people tend to actually SHOP around for their home mortgage loan, and typically they do this online. People that would normally just get a business card from a real estate agent, a referral from a family member, or just use their depository institution that they have a checking / savings account with tend to get a second opinion as rates rise, especially as the mainstream media covers and new technology enables easy article sharing. Lenders are now checking their pricing against competition more than ever because of this, since more people are going online to shop for their mortgage just to make sure they are getting a fair rate / cost combination. Websites like RateBid and Zillow are nice because they allow borrowers to stay anonymous while lenders compete with each other for the loan scenario. RateBid even let's the borrowers watch the "fight", which is sort of entertaining. With no "winning bidder", it's an efficient way (posting your loan scenario takes about 30 seconds) to really "zero in" on which lenders can handle (possibly a unique loan scenario?) AND which ones can offer the best pricing, all while avoiding all the sales calls from mortgage lenders that typically follow immediately after giving up a phone number online. As a mortgage loan originator, if I get a call for a loan on a property that's in a state which I'm not licensed in OR if their loan scenario appears pretty "tricky", I just send them to RateBid.com where their post will be delivered to an endless supply of lenders. The last person I sent there wanted a 90% Jumbo loan, and I had no idea who would approve such a request (max is usually 85%). I sent them to RateBid and sure enough they got connected with two lenders that could approve scenario so hopefully they will be taken care of! Must be some portfolio lenders still left out there with niche programs after all...
When we had the crash of 2008, it was reported that for the 50 years before the crash, the annual appreciation was 3% a year.
You know what it was leading up to the crash.
Anything over 3% a year means another bubble...for the benefit of the builders, developers, appraisers, real estate agents, mortgage companies, bankers...they are so stupid and so greedy, they are doing it again.
The numbers aren't slanted at all. #1 home ownership is a privelage, not a right; it takes hard work and a consistent financial effort to sustain it. With that being said, noone ever said your home values would always increase. It is the economics of supply and demand. Cost goes up when demand goes up. Same for building costs and materials.
Unfortunately we live in a society of "ME ME ME." Everyone wants something for nothing without having to work for it. So tired of the bleeding heart liberals who want the government to fix everything. Fix it yourself..get a job, get a better job, get two jobs, but stop whining and do something about yourself. The government is incapable of balancing the budget - what makes you think they have the means to support the lower income class? Obama is a joke - just like every other politician. They lie to the public, waste our tax money, borrow from social security and medicaid (without repayment) and expect our economy to run smoothly. TERM LIMITS on the political front.
And that makes it even more difficult for people who dream of owning their own place one day.
I guarantee you there are more renters than homeowners all over the USA because people just don't meet all the requirements needed to be approved for a mortgage.
It is not the housing market that is booming, it is the builders who have seen a little light and have gone back to their old ways, by jacking up the pricies. They are just like the nasty old greedy bankers. The materials that buliders put into these houses are not worth what they are charging. Let them build houses and I pray and hope that they get stuck this time with the whole inventory, maybe this time they will learn a lesson. Crooks, greed, crooks, greed.
Unfortunately there are no lies here. There's a lot of baby boomers with a lot of money who buy all cash, and rich chinese who do the same, hence the prices are going up in major cities. If you live in the boonies like Kansas or something, then no prices are not going up so much. But for those that live in actual civilization, yes prices are going up. But they will drop only IF interest rates spike. Only then will they drop, and depending, on how much interest rates rise. If the rates only rise a bit, then no drop at all.
Most of us are priced out of most civilized real estate markets, and thus must move to San Antonio, TX, RIverside, CA or Flint, MI or some other such sucky place like that to afford something decent.