Tag Archives: Home Values

No matter how foggy the haze is, economists typically dust off their crystal balls in December. However economic forecasts too often involve driving by looking in a rear-view mirror. Because housing is a unique expenditure--combining elements of investment and a service--it depends on a variety of elements. The biggest question mark over the housing picture, though, is the fiscal cliff and the on-again, off-again negotiations to avoid a national financial calamity.

Optimism among both real estate professionals and homeowners regarding home values is rising, according to a nationwide survey.

On a monthly basis, home values inched up by 0.6 percent to $156,200 in November, according to Zillow's Home Value Index. Compared to November 2011, home values have increased by 5.2 percent, which is the biggest yearly gain since August 2006. Twenty-six of the 30 largest metros tracked by Zillow registered yearly gains. Not surprisingly, Phoenix led with a 23.2 percent increase. The metro was followed by San Jose (+13.4 percent), San Francisco (+12.1 percent), Las Vegas (+11 percent), and Denver (+10.8 percent).

Existing-home sales rose 5.9 percent in November to a seasonally adjusted annual rate of 5.04 million, the highest level since November 2009, the National Association of Realtors reported Thursday. Economists had expected the sales pace to improve to 4.9 million. The increase in sales in November was the fourth in the last six months, following a similar pattern from 2011. According to the NAR's data, November existing-home sales--closed transactions--were up 14.5 percent from one year earlier.

With fluctuations in rental and owner markets over the past few years, it can be difficult to determine whether one is better off renting or owning. In Manhattan, renting is currently the more financially viable option, according to a new study by the Federal Reserve Bank of New York.

The latest Residential Price Index (RPI) report from FNC, Inc., shows property values continued to improve in October on the national level. Home prices were up 0.4 percent in October, marking the eighth consecutive month of price increases. Year-to-date, prices have appreciated at a rate of 5.1 percent. According to FNC, October's price gains falls "in line with indications of continued expansion in economic activity and better employment rates in recent months."

The desire for homeownership is still strong in young renters, according to a survey released by Trulia.

Add Freddie Mac to the list of companies forecasting great things in the 2013 housing market.

The ongoing housing recovery will remain sustainable for the foreseeable future, analysts for Capital Economics say.

According to new COUNTRY Financial Security Index survey, a vast majority--88 percent--of respondents think owning their home is important. However, only 45 percent say they think homeownership is feasible for middle-income households. Part of the pessimism regarding respondents' ability to purchase a home may stem from concerns about their savings and the job market. According to the survey, 65 percent of consumers say they wouldn't be able to make mortgage payments after nine months if they lost their job.