Market Studies

U.S. home values in 2012 rose 5.9 percent over 2011, according to data in Zillow's latest Home Value Index (HVI). The 5.9 percent appreciation rate is the largest annual gain since August 2006, near the peak of the housing bubble. As home values rose throughout 2012's fourth quarter, foreclosure activity declined, with 5.22 out of every 10,000 homes nationwide facing foreclosure in December.

Existing-home sales fell 1.0 percent in December to a seasonally adjusted annual rate of 4.94 million, and November sales were revised downward, slipping below 5 million, the National Association of Realtors reported Tuesday. Economists had expected the sales pace to improve to 5.1 million. The supply of existing homes for sale fell in December to 1.82 million, the lowest level since January 2001. At the current sales pace, the homes available for sale represent a 4.4 month supply.

In a commentary from Capital Economics, economist Paul Diggle declared existing home sales are now at a ""historically-normal level"" relative to population after breaking past the five million mark. The NAR reported existing-home sales in November rose to a seasonally adjusted annual rate of 5.04 million. Based on pending home sales in November, the firm's calculation shows existing-home sales in December should increase to an annual rate of 5.15 million. NAR is scheduled to release data on existing-home sales on Tuesday, January 22.

As home prices continue to climb, real estate agents and homebuyers are maintaining a positive outlook for home values in 2013, a recent survey found. The survey, which was jointly released by Point2Homes and PropertyShark, reported 71 percent of survey respondents predicted home prices will go up or maintain their current level in 2013. The survey included nearly 1,500 real estate professionals and homebuyers.

The housing market finished 2012 strong with year-over-year gains in home sales and prices, according to RE/MAX's December National Housing Report. The report, which covers 52 metro markets, shows a broad recovery all across the country, with both sales and prices rising almost every month in 2012. The biggest issue leftover from 2012 is inventory, which in December saw its 30th straight monthly decline.

According to data from the Warren Group, Chapter 7, Chapter 13, and Chapter 11 bankruptcy filings in Massachusetts saw double-digit decreases year-over-year in 2012. Bay State Chapter 7 bankruptcy filings decreased 18 percent over a one-year period after numbering 11,964 in 2012, down from 14,716 in 2011.

Amid concurring opinions from industry analysts that the housing market hit bottom last year and is now in gradual recovery mode, the nation's debt ceiling debate brings unwelcome uncertainty. The Center for American Progress (CAP) argues vehemently that neglecting to raise the debt ceiling would be detrimental to the housing recovery and the nation's economy as a whole. ""Not raising the debt ceiling quickly and unconditionally is economic malpractice that could derail a modest economic and jobs recovery,"" said Christian E. Weller, senior fellow at CAP.

As home prices continue to increase, spectators and analysts have concluded the housing market is now in recovery mode. But, one analytics firm has remained unconvinced and expects to see a trend where prices rise and fall periodically as investor demand waxes and wanes. ""Some commentators suggest that investor-driven home price appreciation could spur demand among housing consumers, which will in turn bring about a broad-based and sustainable recovery in the nation's housing markets,"" wrote Quinn W. Eddins, director of research at Radar Logic. ""Maybe, but we are skeptical of this theory.""

Unemployment rates fell in 22 states in December but rose in 16, the Bureau of Labor Statistics (BLS) reported Friday in its monthly Local Area Unemployment Statistics (LAUS) release. In November, unemployment rates dropped in 45 states. According to the LAUS report, the West had the highest regional unemployment rate--8.6 percent, down from 8.7 percent in November and 9.8 percent in December 2011. The Midwest registered the lowest unemployment rate with 7.1 percent, unchanged from November and down from 7.9 percent in December 2011.

Consistent with 2012 trends, Realtor.com found Florida, California, and Arizona, ""markets that were once the epicenter of the housing crisis,"" are improving, while markets in the Midwest and Northeast continue to struggle. List prices increased in 66 of the 146 markets Realtor.com observes. Prices remained unchanged in 31 markets and decreased in 49. One trend that remained relatively consistent across most markets was inventory, which declined in 145 of the 146 markets observed.