2013 Real Estate Update:
The housing recovery of 2013 continues as home prices go up, up, up. In January home prices were up 8.1% from the year before. The S&P Case0Shiller index shows we are seeing the biggest home price gain since June 2006, marking it the highest increase since the housing bust. In February, the average home sold for $246,800, which was up from 3% the previous year.
It is currently looking like 2013 is the year for new-home sales to be strong. And, home sales are expected to be even stronger in the last half of 2013. The housing recovery appears to be widespread and not localized to certain regions. Twenty of the hardest hit housing markets are now showing price gains year-over-year; however, Detroit is still lagging behind.
Some of the most hurt housing markets from housing bust are enjoying the largest gains. And, now experts are seeing a lot of strength in whole the housing market. Of course we are not at the peak we saw in 2006 when the index was at an all time high. But we have come a long way in the healing process.
A number of factors have helped home prices raise in recent months, such as the inventory of available homes for sale, a drop in foreclosures, a decline in unemployment, and near record-low mortgage rates.
Because of the housing recovery, we are all enjoying economic growth. Even home builders are trying to get enough help to keep up with new demand. A rise in home prices also helps reduce the amount of people who owe more than their homes are worth. This will help more and more homeowners refinance their home loans at lower rates and free up some money so they can spend it on other things.