Friday, May 24, 2013

Home Prices on the Rise

The NAR has released reporting data for all fifty states and D.C. and 42 of 51 are reporting gains in real estate values.  Out here in the West we are enjoying the strongest appreciation as inventory remains quite tight.  

This remains a golden opportunity to buy real estate.  Although we are not at the bottom of the market anymore, we are still enjoying low overall prices.  The movement upwards helps build confidence in the market and increases the chances of short and long term appreciation for current home buyers.  Rates remain low but have been edging up steadily over the last several weeks.  it is critical to remember that interest rates historically hover around 6-7 percent and any rate under 6% is considered a good rate.  The current average here in Washington State is running in the upper 3's.  

I am very excited about the trends in the market right now.   
This in from the National Association of Realtors

  • Price gains were largest in the West. Nevada, Arizona, California, and Idaho each saw gains exceeding 15 percent from one year ago. The map above shows the breakout of annual gains for each state.
  • Nationally, prices rose 1.9 percent from the fourth quarter. Note that this is seasonally adjusted, but not annualized, meaning that if prices continue to gain at this pace, it would imply an 8 percent gain for home prices nationally in the course of a year.
  • FHFA uses a weighted repeat sales index that compares the prices of properties that involve a conforming conventional mortgage purchased or securitized by Fannie Mae or Freddie Mac. Thus, the FHFA index is based on a broad geographical sample of home transactions, though it misses out on transactions involving cash, jumbo or FHA/VA loans. In spite of this limitation, its price trend is usually similar to that of other price measures.

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