Skip to comments.The Home Price Rally Is Spreading To More Housing Markets
Posted on 10/02/2012 7:09:51 AM PDT by blam
The Home Price Rally Is Spreading To More Housing Markets
October 2, 2012
Home prices, including distressed sales, were up 4.6 percent year-over-year according to CoreLogic's latest home price index. Prices were up 0.3 percent from a monh ago.
This is the sixth straight increase in home prices.
Excluding distressed sales home prices were up 4.9 percent on the year, and 1.0 percent on the month-over-month.
One of the criticisms leveled at those that say housing has turned the corner is that housing is a local story and many markets are getting worse. But Mark Fleming, CEO of CoreLogic said more markets are seeing improvement.
"The housing market's gains are increasingly geographically diverse with only six states continuing to show declining prices," according to Fleming.
Many argue this phenomenon is key if housing is expected to drive economic growth.
Here are some details from the report: Arizona posted 18.2 percent increase in home prices including distressed sales. Ex-distressed sales, home prices were up 13 percent. "The five states with the largest peak-to-current declines, including distressed transactions, are Nevada (-54.7 percent), Florida (-44.3 percent), Arizona (-42.0 percent), California (-37.7 percent) and Michigan (-36.5 percent)." The Phoenix-Mesa-Glendale metro area saw the largest increase in home prices, with single-family home prices rising 21.8 percent, and single-family homes ex-distressed sales up 16.9 percent. September home prices are expected to rise 5 percent year-over-year (YoY), and fall 0.3 percent month-over-month (MoM). Ex-distressed sales they are projected to rise 6.3 percent YoY and 0.6 percent MoM.
Here's a chart from CoreLogic showing the trajectory of home prices since January 2002:
(Excerpt) Read more at businessinsider.com ...
Some good news I guess.
The guy down the street from me sold his house for what I bought mine for 3 years ago so I guess I’m not taking a bath anymore. Then again, he had a finished basement and I don’t. I still think we have a couple years to go before we are out of any housing depression. And if we fall into another general economic recession, all bets are off.
Good news? Not sure, really. Is the ‘price’ of the home actually increasing or does it take an ever-larger number of increasingly worth-less dollars to buy the same home?
Media can spin it how they want it but I’ll guess it’s inflation being passed along the supply chain. There are too many houses chasing too few potential buyers and Helicopter Ben is working his butt off daily to devalue our money.
Just my opinion and that and what, $7 now, will get you a coffee at Starbucks.
Federal reserve money creating, but you know this already.
The report is not in proper context. The prices are increasing as a result of inflation, not “normalization”
The rise in $$ value of hard assets represents devaluation of the US$. It has been present elsewhere....gold, silver, oil and finally got around to real estate.
Wages are lagging
So we do have a weird, rising real estate market based on a temporary and artificial scarcity. But it ain't gonna last...
Inflation makes the price of everything go up, food, gas, electricity, cars, clothes and even houses.
(no further comment needed)
This is NOT good news. I’m a realtor in Vegas. The market should be filled with foreclosures, but the only people able to buy the few homes on the market are cash buyers. That means the market is 100% manipulated by the banks and Fed. There is no market. Just a continuing crony banker bailout.
Many argue? Many stupid people argue I guess. Housing cannot drive ecnomic growth... not without another bubble. And haven't we learned about bubbles yet?
The banks and others are holding mortgages and foeclosed houses priced at 2007 prices on their books, and if they marked them to market, they would be insolvent. The Fed's goal in zero percent interest rates these last few years is to prop up the price of housing at all costs. This is also why QE3 is the Fed buying MBS, to lower mortgage rates and prop up house prices. When housing again approaches 2007 levels, and banks can dump the foreclosed property without taking a bath, housing crisis will be over, at least for the banks.
They are holding out for the bulk buying program by the Feds ... political insiders will get the top pickings ... small time investors, even small time cash investors will be shut out of the market.
I hope people are smarter this time around.
Who would buy a house at 2007 prices knowing it was a bubble?
What am I saying? Plenty of stupid people would do it and we could get another bubble which I agre is what the Fed wants.
But I’m out. I’m not paying 2007 prices for real estate.
Most of the rock bottom bargains and lower price homes from foreclosures have been bought up.
Now bargain hunters are buying foreclosed homes with slightly higher prices.
Also - The value of the dollar has sunk to new lows since Obama was coronated.
Gold, silver and the stock market are hignher in part because the dollar buys less - much less.
Gasoline is more than double the October 2008 price.
Beef, coffee, peanut butter - almost everything we buy is up 50% to 100%.
So much of the increase in average sale price of homes is just that the dollar is worth less.
Eventually, Bernanke’s Trillions have to chase something.
Finally, it’s housing.
Now, with Owners’ Equivalent Rent rising, the core rate of inflation will reflect the money printing bonanza that has occurred.
Milton Friedman (Uncle Miltie) will be vindicated, and it will be ugly.
Low interest rates allow the price to rise without affecting monthly payments.
Very little attention is paid to this little tidbit.
Inflation is a big factor. Also, foreign money. The relative value of the dollar makes our real estate look very attractive to foreigners.
Investors are scooping up properties en masse. I suspect some of those investors are ChiComs.
What I’m seeing in southern AZ is that houses are moving now, but moving at about 2003 prices (personal guess). We’re still way below 2006 prices. My guess is that these are sustainable prices for the wages paid near where I live. I don’t see much future increase for a few more years.
That advice is worth every cent you paid for it... :>)
The reason for housing prices going up is the lack of available homes for sale. It’s a supply and demand issue and the supply is very low right now so it’s pushing prices higher.
Alternate headline. The Price of Garbage, Going Up!
Meanwhile here in western washington, the values are in free fall.
You are so right. Chinese money. In the area around MIT and Harvard the Chinese are bidding with cash for a fast closing. They come prepared with a list of their bank accounts to document that they have the cash - a lot of it. They’re bidding way above asking price if it’s what they want - a brick building near Harvard. A one bedroom place in a good building near Harvard Sq went on the market for 895K and was under agreement immediately. Probably for more than asking.
Good news for banks selling fiat debt to consumers. But absolutely horrible news for consumers.
The only good news is for people who bought into the bubble and are trying to get out. But who profits from this? The banks selling the mortgages and the (new) land owner class of housing speculators.
If the market turns the banks will get bailed out and keep their notes after foreclosure. Not so for consumers.
Has employment gone up?
Have real wages increased?
Has workforce participation increased?
Gee, lets play this with commodities and groceries and the banks can offer loans for these too! That will also be great as prices rise. I could sell the milk I buy before it expires for a 15% profit! /S
Also, foreign money. The relative value of the dollar makes our real estate look very attractive to foreigners.
Every day things look, feel and stink more and more like the Carter years.
Obama hasn't invented time travel to the past but he sure knows how to make it feel like he has.
What will happen when the 3.8% tax buried in Obamacare comes online Jan 1st, 2013?
That will hammer the real estate market.
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