Tag Archives: Home Prices

Home prices will increase by 3.1 percent in 2013 and top off 2012 with a 4.6 percent gain, according Zillow's December Home Price Expectations Survey. The survey, which was conducted by Pulsenomics LLC, was based on responses from 105 economists and industry experts. In September, survey panelists projected more modest gains and predicted prices would rise by 2.4 percent in 2013 and increase overall by 2.3 percent in 2012. Through 2017, panelists expect prices to increase by more than 3 percent annually.

New home sales jumped 4.4 percent in November to 377,000, the highest level since April 2010, the Census Bureau and Department of Housing and Urban Development reported Thursday. Economists surveyed by Bloomberg expected the report to show a sales pace of 375,000.

Home prices fell in October for the first time since March, according to the monthly Case-Shiller Home Price Index. Both the 10-city index and the 20-city index decreased 0.1 percent from September to 158.77 and 146.08 respectively. The value of the 10 city index fell 0.10 and of the 20-city index dropped 0.09. The 10-city index for October was 3.4 percent higher than it was in October 2011 and the 20-city index showed a 4.3 percent year-year gain.

The housing market remains under pressure in the near term, with shadow inventory, in particular, posing a risk to the housing recovery, according to a report from DBRS. According to estimates, the report revealed about 2.3 million homes still remain in the shadows as of July 2012, and another 2.5 million homes are in existing and new home inventory, or visible inventory. ""Once unleashed, the number of shadow properties will undoubtedly boost supply and distress the local markets that were just beginning to recuperate,"" the report stated.

No matter how foggy the haze is, economists typically dust off their crystal balls in December. However economic forecasts too often involve driving by looking in a rear-view mirror. Anticipating what might happen in the housing markets, with so many moving parts involved, can be the trickiest of all forecasts. Because housing is a unique expenditure--combining elements of investment and a service--it depends on a variety of elements: employment, income, interest rates, the regulatory environment, and even the weather.

After five years of cumulative losses, home values will finally post their first annual gain, according to data from Zillow. The calculations show homes are expected to gain $1.3 trillion in cumulative value for 2012, the largest gain since 2005 and the first annual increase since 2006, Zillow reported. In 2006, homes increased their value by $483 billion, but then declined from 2007 to 2011, with the largest drop in 2008, when homes lost more than $3.2 trillion in value, according to Zillow.

After tracking home price trends in 25 metropolitan statistical areas (MSAs), Radar Logic found prices in October are now 6.9 percent higher than a year ago, according to the company's RPX Composite price. ""However, this increase was driven by a change in the composition of sales rather than price appreciation,"" Radar Logic stated in a recent report. Upon closer scrutiny, the analytics company explained the price increase is mainly the result of a decrease in distressed sales, or ""motivated sales,"" and the actual price increase for ""non-motivated sales"" is much smaller than the overall yearly gain.

The winter season has not stopped home prices from posting both monthly and yearly gains, according to recent reports, and the Federal Finance Housing Agency's (FHFA) October home price report was no different. According to the agency's Home Price Index (HPI), home prices in October rose 0.5 percent from September and 5.6 percent from October 2011. The index current sits 15.7 percent below the April 2007 peak.

Existing-home sales rose 5.9 percent in November to a seasonally adjusted annual rate of 5.04 million, the highest level since November 2009, the National Association of Realtors reported Thursday. Economist had expected the sales pace to improve to 4.9 million. The median price of an existing single-family home rose to $180,600 in November, up 10.1 percent from November 2011. November was the ninth consecutive month to see year-over-year price gains, maintaining the longest streak for yearly improvements since mid-2006.

The largest counties in the country displayed strong home price growth in November, but sales were weak, according DataQuick's most recent Property Intelligence Report (PIR). The company's PIR tracks valuation, REO inventory, and sales trends in the 42 largest counties on a monthly, quarterly, and yearly basis. Among the findings, DataQuick reported prices grew in 41 of the 42 counties month-over-month in November, and all 42 counties showed quarterly and yearly home price growth. Sales were dismal for the most part, with sales increasing in only 13 of the 42 reported counties month-over-month.