Home Prices Rise at Fastest Rate in 7 Years
Home prices rose at the fastest rate in almost seven years signaling ongoing housing market recovery. The S&P/Case Shiller index of 20 metropolitan areas released on Tuesday showed single-family home prices rose 9.3 percent in February from a year earlier.
The S&P/Case Shiller index showed prices gained 1.2 percent in February on a seasonally adjusted basis from January, topping forecasts for a 0.9 percent gain.
Attributed to David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices:
“Home prices continue to show solid increases across all 20 cities. The 10- and 20-City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005.”
Home Price Increases Boost Economy
Home price increases boost the overall economy. Besides the jobs created by a pick-up in construction and home sales, rising prices mean fewer homeowners are underwater on their mortgages, owing more than the home is worth. That allows more homeowners to refinance, saving money they can spend on other things.
“Despite some recent mixed economic reports for March, housing continues to be one of the brighter spots in the economy. The 2013 first quarter GDP report shows that residential investment accelerated from the 2012 fourth quarter and made a positive contribution to growth. One open question is the mix of single family and apartments; housing starts data show a larger than usual share is apartments,” said Blitzer.
Buying a Home in this Environment
The price of a home is a major consideration for those considering a home purchase. Home buyers want to know they are making wise financial decisions.
A nationwide panel of more than 100 professional forecasters expects home values to end 2013 up an average of 4.6 percent and rise cumulatively by 22 percent, on average, over the next five years, according to the first quarter Zillow® Home Price Expectations Survey.
If you are considering a home purchase, contact a licensed Inlanta Mortgage loan officer to discuss available loan programs and receive a pre-approval letter to aid in your house hunting. Use our branch locator to find a loan officer near you.
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