When it comes to home prices, that is. At least that’s what the current trend is telling us.
It’s a trend of housing prices going one way – up. That’s great news for homeowners. Trust me, I know what it feels like to have your home lose a lot of value. I sold my home in 2009 and it sold at a 60% loss from what I paid for it 10 years earlier! I’m not kidding. The house lost 60% of it’s value. I was not happy, but I was happy with the great deal I got on my new home. But that’s not what I want to talk about today.
Today, I want to talk about a very interesting article I came across on NPR.org today. U.S. home prices posted their first 12-month gain in a couple of years. The last time we saw a slight rise, the First-Time Home Buyer’s Tax Credit was in full what NPR is calling “evidence of a nascent housing recovery.” I like that. I like the word nascent, too.
Anyway, here is some info from the article:
Jonathan Basile, an economist with Credit Suisse, said improving home prices should boost home sales further in the coming months.
“Persistent news of rising house prices should start convincing prospective home sellers that it’s not just a buyers’ market,” Basile said. “And when Americans become more comfortable with selling their home, they also become more comfortable with buying another one.”
The S&P/Case-Shiller monthly index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The June figures are the latest available.
The increases partly reflect the impact of seasonal buying. The month-to-month prices aren’t adjusted for seasonal factors.
Still, a measure of national prices rose for the third straight month. Home prices jumped nearly 7 percent in the April-June quarter compared to the previous quarter.
The housing market is making a modest but steady recovery in part because homes are more affordable: Mortgage rates have fallen to near-record lows. Housing prices are about one-third lower than at the peak of the housing bubble in 2006. Those trends have helped lift sales of both new and previously occupied homes.
Sales of previously occupied homes increased in July from June, the National Association of Realtors said last week. Sales have jumped 10 percent in the past year.
Builders are growing more confident after seeing more traffic from potential buyers. Last month they applied for the largest number of building permits in nearly four years last month.
Read the full article here. And buy a home if you don’t own one. You’ll kick yourself in a few years once prices and rates have jumped up from today’s lows. It’s bound to happen. Just a matter of time.