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Housing Outlook: Price Gains In Double Digits

Written by on Sunday, 16 February 2014 12:02 pm
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According to CoreLogic's Home Price Index (HPI), the 11 percent increase in December home prices represented the 22nd consecutive monthly year-over-year increase.

Freezing temperatures did little to cool the housing market in January. The Pending HPI forecasts home prices to have risen 10.2 percent higher than the year before.

Excluding distressed sales, including short sales and foreclosures, equity sales prices rose 9.9 percent in December and are expected to rise 9.7 percent in January year-over-year.

A slowdown in momentum is not necessarily a halt to brisk housing sales.

"Last year, home prices rose 11 percent, the highest rate of annual increase since 2005, and ten states and the District of Columbia reached new all-time price peaks," said Dr. Mark Fleming, chief economist for CoreLogic. "We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014."

The latest quarterly report from the National Association of REALTORS® suggests that price gains are regional. While 119 out of 164 metropolitan statistical areas (73 percent) reported year-over-year price gains in Q4 2013, 42 areas or 26 percent showed double-digit gains. Forty-three percent recorded lower median prices.

Rising markets slowed down in Q4 from 88% in the third quarter and with 33 percent reporting double-digit growth.

Lawrence Yun, NAR chief economist, believes that home prices and mortgage rates are more expensive and are natural drags on higher prices, but that areas that are still seeing large gains will need more inventory for prices to moderate.

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7 comments

  • Comment Link Rosa Castaneda Thursday, 27 February 2014 10:44 am posted by Rosa Castaneda

    I don't know much about who and what, but I do know that the rich from foreign Countries have push the prices of Real Estate with them purchasing with cash and making them selfs richer then what they all ready are... My neighbors daughter came from MEXICO CITY and paid cash for a condo in SD down town...A purchase of 450K in 2009, and has made over 200K all ready...She does not live in the US or has legal residency but most deffenetly has made the real estate market prices impossible for most middle class people...Not to mention the rich Chinese and other foreigners...How democratic is that!

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  • Comment Link Robert Strupp Wednesday, 19 February 2014 7:37 am posted by Robert Strupp

    Dkp, thank you for your question. Although"blame" may be relevant if laws and regulations have been violated (i.e, fair housing), my initial comment was to note the continuing disparity in homeownership between whites and minorities. A society where the few "have" and the many "have-not" (opportunities for homeownership) contradicts American principles, laws and goals. More opportunities for affordable homeownership, private and government driven, are needed to achieve this. For example, if underwritten and serviced fairly, Wells Fargo's recent announcement that it will provide a subprime loan product may be a good thing.

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  • Comment Link Dkp Wednesday, 19 February 2014 7:14 am posted by Dkp

    and , Robert, who's fault is that. Who are you blaming ? It could just be fixed by Govt doing something, huh?? Sorry, but it has to be said!

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  • Comment Link Keith M. Bender Tuesday, 18 February 2014 4:28 pm posted by Keith M. Bender

    The lack of relationship in PerCentages to Reality is all too well known and yet all too much ignored. Compared to what?

    Some love affair with Medians lull's us into a fractured sense of (mis)understanding . The Median Family is a White Family trying to keep up with their White Neighbor who is Median White Income. Meanwhile the Median Family Income for a Hispanic Family is Not even 53% of the White and just 62% of the "Medians". Does that equate to a 22 % increase if you are Hispanic?

    An 11% increase in the Median Family Income in Fairfax County,Va. is only $7,000 for Hispanics while it's Nearly $13,500 for Median Whites. The Price is one thing ,the Cost is entirely another. A relevant statistic is Gold while an irrelevant one is just lead. National Numbers do not exist in Reality,just as the Median Income only holds validity to the stack of numbers inputted.

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  • Comment Link Linda Just Monday, 17 February 2014 1:15 pm posted by Linda Just

    The market has slowed since the Government Shutdown last October. You can thank our Congress for their excellent decision to help their constituents...never have I seen a more selfish delegation of so called representatives...These people have ruined the confidence of Americans and they've been paid to do it!!!
    Mortgage rates have gone up and makes purchasing a home less affordable.

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  • Comment Link Antoine Monday, 17 February 2014 12:22 pm posted by Antoine

    This is really old news, and actually incorrect for the area I work, the east bay area in Oakland. Price increases have slowed down already since October of last year, and I see plenty of listing prices way above market (including the stupid banks REO owned properties). I also see plenty of price reductions on existing listings already as sellers (and their agents I guess), are greedy, and not realistic. The interest rate increases since June of 2013 have also put a dent in property sales and value increases, as purchasing power decreased. And with banks being overly conservative, I see demand going down as well. Investment buyers (all cash) are not as eager as they were, because prices of course have increased double digit in my area. Although I think it is still a good time to buy, value increase in my opinion will not be more than 4 - 6% in 2014.

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  • Comment Link Robert Strupp Monday, 17 February 2014 10:32 am posted by Robert Strupp

    Who are these buyers? Are they wealthy and White? With credit tighter and many home sales going to all-cash buyers,minorities are not able to purchase and recent census data shows that In the fourth quarter (2013), the homeownership rate for blacks fell to 43.2 $ from 44.5 % a year earlier.The rate for whites dropped to 73.4 percent from 73.6%

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Individual news stories are based upon the opinions of the writer and does not reflect the opinion of Realty Times.
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