Recent Report Shows Continued Growth in Housing Market According to Brian Kinkade, Denver Realtor
"A recent Standard & Poor’s/Case-Shiller report indicates the housing market is continuing to recover. In November, the S & P/Case-Shiller report found that home prices increased in most major U.S. cities in September." According to the report, which included a 20-city index of home prices, prices increased by 3 percent in September when compared to September of 2011.Furthermore, prices increased by 3.6 percent when comparing the July-September 2012 quarter to the same quarter in 2011. In all, 18 of the 20 cities saw a price increase over a 12 month period.
Phoenix led the way with an increase of 20.4 percent. Atlanta rounded out the bottom of those that showed an increase with a 0.1 percent bump. Although the increase was slight, it represented the first price increase after 26 year-over-year declines in price. When comparing September 2011 to August of that same year, prices increased in 13 of the 20 cities. Five of the cities experienced a price decline while two remained unchanged. Las Vegas was one of the cities to post an increase.
While the increase may appear to be modest 1.4 percent, the climb is significant since the city was one of the hardest to be hit by the housing crisis. Furthermore, these figures represented the largest month-over-month increase. Phoenix and Minneapolis came in next with a 1.1 percent increase, while Cleveland experienced the greatest decline with a 0.9 percent fall.
The steady increases in home prices have been a driving factor in the housing market recovery. When prices start to go up, more buyers are encouraged to purchase homes before prices increase too much. At the same time, sellers are more inclined to put their homes on the market because they are more confident they can get a good price. Higher home prices are also good for the economy in general because it makes homeowners feel wealthier and more secure. The more secure and wealthy they feel, the more likely they are to spend money.
With consumer spending accounting for approximately 70 percent of the U.S. economy, consumer confidence is key to an economic recovery. In addition to increasing home prices, the excess supply of homes that was built up prior to the housing crisis has finally dwindled. In fact, new home inventories have almost reached the lowest level since 1963 and have reached a 10-year low. This trend has given a boost to new construction while also putting sales of previously occupied homes to nearly a five-year high. Builders are also gaining confidence in the market, resulting in the fastest growth in new homes and apartments in more than four years.
About the Author – Deb Henne is a Realtor who writes for realestatemkting.com in his spare time.
The Gulfshoreslife.com Team