RealtyTrac Report Shows Home Prices Increasing At Highest Rate Since 1977
U.S. housing markets continue to drive the economic recovery according to data released by RealtyTrac Inc.
National home prices rose by 11.90 percent year-over-year for June.
48 states reported rising home prices with only Delaware and Mississippi reporting lower home prices. Nevada led the states with a 26.50 percent gain over June 2012.
Cities also fared well on housing prices; 99 of the 100 largest U.S. cities reported gains in home prices.
Rising Home Prices And Mortgage Rates, Short Supply Of Homes
According to Mark Fleming, chief economist for CoreLogic, home price trends are rising at their fastest pace since 1977. While good news for sellers, homebuyers may find fewer affordable options over time while also contending with rising mortgage rates.
In spite of rapidly rising home prices, national home prices remain about 19 percent below their peak in April 2006.
Fewer Foreclosed Homes Contribute To Rising Home Prices
RealtyTrac estimates that 500,000 home mortgages will be foreclosed this year. This is approximately 25 percent lower than the number of 2012 residential foreclosures.
Bank-owned homes are typically offered at lower prices and with incentives such as direct financing, but most are sold as-is with no warranties or guarantees as to their condition. Multiple foreclosed homes within a community can drag down home prices, so fewer foreclosed homes is positive for homeowners and communities alike.
Want To Buy A Home? Don’t Give Up
Rising mortgage rates and home prices can present challenges, but working with a trusted local real estate professional can help with finding an affordable home.
Programs are available for assisting eligible first-time buyers with their down payment and closing costs. Buyers who rely on mortgage loans for financing their home purchase can improve their chances by being pre-approved for a mortgage before shopping for a home.
Adjustable-rate mortgage loans that provide a low fixed rate for a specified introductory period provide an alternative to higher payments required of a fixed-rate mortgage. An adjustable-rate mortgage may be a good option for first-time buyers who plan to “move up” within a few years.
In MY humble opinion, home prices will be softer, or more negotiable over this next 5 months, before next year’s new buying season starts, in mid January.
For assistance in finding an affordable home please feel free to reach out to me today. Call or text me at 949-887-5305, or shoot me an email at BobPhillipsRE@gmail.com.