Home values are rising and the lack of potential income growth is making the housing market seem to slow down a bit. Here are some positive trends we are seeing:
In September, the average price of a single-family home rose 0.7% from August and 13.3% from a year ago reported S&P/Case-Shiller. In August, the average price has risen 12.8% from a year earlier. The average price is now down 19.8% from its prior peak in July 2006. The increase in September was slightly higher than expected by market forecasters. It had fallen 33.4% to a trough in March 2001 and is now up 20.4% from that market bottom. So prices have recovered almost half the decline. All of the 20 cities in the index showed an increase in year-over-year prices, led by gains of 29.1% in Las Vegas and 25.7% in San Francisco. The smallest gain was in New York City, which showed a 4.3% advance.
The FHFA home price index rose 0.3% in September, after an upwardly revised 0.4% increase in August. This index only reflects prices of homes insured by Fannie and Freddie.
The USDA forecasts that net farm income will rise 15.1% this year to $131 billion, the highest level since 1973 on an inflation-adjusted basis.
Residential property sales, including single-family homes, condominiums and townhomes, continue to rise, increasing to an estimated annualized pace of 5.649 million in October, a 2% hike from a month ago and an increase of 13% from October 2012, the latest RealtyTrac Residential and Foreclosure Sales Report revealed.
A big thank you to John Coester for providing us with the information!