Home prices are expected to peak in 2013 across the nation as home prices show signs of improvement. They still have a long way to go before it will make up for the losses, but this is an excellent sign of a recovering housing market.
Fiserv, a provider of technology solutions to the financial world, is predicting home prices will bounce back nearly 3.7% a year for the next several years. If this rate is accurate and keeps at a slow pace, it could be 2023 before we see average home prices of $235,000 once again. That may be a long time, but 20% below average is better than the losses we saw in the crash of the housing market.
Some areas around the country that were harder hit could take longer to see a rise in home prices. Some areas could be looking at decades before a full recovery will happen. States that were hit really hard include Nevada, Florida, Arizona and California. Homes in these states will grow much slower than the rest of the country. However, California’s home prices show faster growth than the others.
Fiserv also believes that homeowners in Nevada could have to wait the longest on recovery. Some even believe it could take up to 40 years before a full recovery is achieved.
Other areas of the country will fare better than some. Take St. George, UT for instance. The housing market here is already on the track to recovery. Existing are up and new home construction is rebounding as well. The average home price in St. George is currently $168,900 and steadily rising.