Year-over year US home prices up sharply in November

U.S.  home prices in November extended their steady recovery from the housing bust,  rising 7.4 percent compared with a year ago. It was the biggest year-over-year  increase in 6½ years.

CoreLogic,  a private data provider, said Tuesday that prices also rose 0.3 percent in  November from October. The month-to-month figures are not seasonally adjusted.  CoreLogic compiles its indexes by tracking sales of the same homes over time,  using data on sales in all 50 states.

The  gains in home prices have been widespread across most of the country. And  CoreLogic forecasts that prices will increase 6 percent this year.

Prices  in November were higher than in November 2011 in all but six states. And only 13  of 100 large cities that CoreLogic studies reported year-over-year price  declines. That was down from 20 cities in October.

The  sharpest increases were in Arizona, Nevada and Idaho. North Dakota and  California rounded out the top five.

Steady  price increases are helping fuel the housing recovery. They’re encouraging some  people to sell homes and enticing would-be buyers to purchase homes before they  get more expensive. Rising prices also reduce the number of homeowners who owe  more on their mortgages than their homes are worth.

“All  signals currently point to a progressive stabilization of the housing market and  the positive trend in home price appreciation to continue into 2013,” said Anand  Nallathambi, CEO of CoreLogic.

Despite  the gains, home prices nationwide are still nearly 27 percent lower than in  April 2006, when prices peaked during the housing bubble.

Some  of the biggest gains have been in states that were hurt the worst. Prices in one  of them, Arizona, have jumped nearly 21 percent in the past year, the most of  any state. But prices in that state are still nearly 40 percent below  their peak.

And  prices in Nevada have risen 14.2 percent in the past year but remain 53 percent  below peak levels.

The  states where prices continue to fall include Delaware, where they are 4.9  percent below a year ago, and Illinois, down 2.2 percent. Connecticut, New  Jersey, Rhode Island and Pennsylvania are also reporting declines.

Prices  rose 24 percent in Phoenix in the past 12 months, the most of any large metro  area. Riverside-San Bernardino, Calif. was next with a 9.7 percent rise. It was  followed by Los Angeles, where prices rose 8.4 percent.

Source: Sfgate.com

Report: Home Prices Poised for Growth in 2013

In stark contrast to this time last year, the housing market is chugging into 2013 with a head of steam.

Home-listing prices were up 5.1% nationally in December on a year-over-year basis, according to data released Thursday by real-estate listings and data company Trulia. Out of the 100 major metro markets covered by the report, 82 of them saw year-over-year gains. At the end of 2011, asking prices had fallen 4.3%, and only 12 markets had posted positive price changes.

“Prices are going into 2013 with strong tailwinds,” said Jed Kolko, chief economist for Trulia. He cites a general strengthening of the job market, which in turn means more families able to cover a sizeable down payment. An increase in household formation, which is also the product of improving job prospects, and home construction could further bolster demand.

Mr. Kolko notes that the sharpest tightening of inventory is taking place in Western states. Four of the top 10 cities to see the largest asking price recovery were in California, including Oakland, San Jose, Sacramento and Fresno.

Las Vegas, which was hit hard after the bubble burst, came in at the top of the list with a 16.3% year-over-year listing price increase. In the same period in 2011, prices dropped 11.2%.

To be sure, even among the markets with major gains, some are better positioned for a sustained housing recovery than others.

While Las Vegas may have seen the largest asking price turnaround, it remains far below pre-bust levels. The problem, Mr. Kolko says, is that the market remains unstable, with high vacancy rates, lingering foreclosures and subpar job growth.

On the other hand, metros like Seattle, which came in second on the list of cities with the highest asking-price recovery, are on a smoother path to growth because of their strong economic fundamentals, he said.

Meanwhile, rents rose nationally 5.2% in the same period. In 17 of the 25 biggest rental markets, home prices are rising faster than rents, according to Trulia. Whereas ownership was typically more affordable than renting in most markets in recent years, as sales demand rises, that edge is becoming less apparent, Mr. Kolko said.