Tag Archives: home price appreciation

The rate of appreciation seems to be slowing after months of steady gains despite house prices rising by 5.6 percent over-the-year in the second quarter, according to FHFA.

Fewer homes for sale over the past year have driven prices up faster than expected.

Although mortgage interest rates continue to remain at historical lows, the benefits of this current environment are not being taken advantage of by borrowers due to one pressing factor in the market: surging home price increases.

Since the Great Recession, home prices have been fighting their way back to peak levels reached prior to the crisis and some markets' home prices have more than recovered.

Existing-home sales reached a six-month high in January, but the combination of persistent tight inventory and rapid price appreciation in the housing market may make it tough for would-be homebuyers this spring.

What markets are exhibiting symptoms of 2005 to 2008 that eventually led to the housing crash?

According to the NAR, price gains were recorded in 85 percent of metro areas in the first quarter. In addition, 34 metro areas experienced double-digit increases in the second quarter, a decline from the 51 metro areas in the first quarter.

"May and June existing home sales have both been very encouraging for anyone looking for proof that the housing market is in recovery, and our July Nowcast indicates that this positive momentum will continue into July," Auction.com EVP Rick Sharga said.

Increasing home values have played a role in reducing foreclosure inventory, since homeowners who either have little equity or are underwater tend to have higher default rates. Nothaft said homeowners underwater by 20 percent or more had a default rate that was four times that of homeowners with a current LTV ratio of 80 percent.

While percentages of homes being flipped nationwide are nowhere near their peak reached in 2005 and 2006, in some areas such as California they remain near their historic levels consistent with home price gains in those areas, according to a report released by Trulia on Thursday.