As we move into summer home sales are rapidly underway and the US real estate market is hotter than ever.
According to the National Association of Realtors, March 2013 experienced the highest home buying activity since that of April 2010. It is thought among economists that March 2013 figures are more “pure” than that of April 2010 figures which the homebuyer’s tax credit helped to artificially support.
Also according to the National Association of Realtors, there is a 7 percent jump in new home purchases on a year to year basis- which will help home values to rise. The Association estimates a 7.5 percent increase in the median US home price in 2013.
S&P / Case-Shiller Home Price Indices report released on April 30th, 2013 show a soar in home prices by 9.3 percent for 20 US cities during the past 12 months ending February.
One of the hardest hit areas during the housing downslide was Phoenix, Arizona, which is now one of the top rolling with an average year over year return of 23 percent, according to S&P/Case-Shiller. For highest annual growth rates Dallas and Atlanta top the charts.
Home prices across the nation continue to rise. According to S&P Dow Jones Indices, the highest annual growth rates since May 2006 were reached in 10- and 20- city composites. This hasn’t occurred since early 2005.
Atlanta, Las Vegas, San Francisco and Phoenix had the greatest price increases in a year over year basis.
With the real estate market in a recovery that is not thought to be temporary, the primary obstacle that will block the growth for the US real estate market is now supply, according to NAR.
With the real estate market in recovery, houses are being purchased faster than they have been in the past five years. Demand is high, and inventories are limited. Unemployment benefits are lower, job additions is higher, and household wealth is rising, all of which will continue to support housing demand.
The US real estate spirit is being felt around the world. The economy is better than it has been in years, interest rates are low, home prices consistently rising, and the opportunity to make a good profit is greater than it has been in years. This is a welcome time in the real estate world, and one that we won’t forget.