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.

Home prices show biggest jump in 6 years in October!

Home prices increased 6.3% in October from a year earlier, the biggest year-over-year gain since 2006, according to Irvine research firm CoreLogic.

Prices dipped 0.2% in October from September, but such a drop was expected at the end of the home-selling season, the firm said Tuesday.

October marked the eighth straight month of year-over-year prices increases and added to recent evidence of growing strength in the housing market. CoreLogic reported Monday that foreclosures were down 17%
in October from a year earlier.

“The housing recovery that started earlier in 2012 continues to gain momentum,” said Mark Fleming, CoreLogic’s
chief economist. “The recovery is geographically broad-based with almost all markets experiencing some appreciation.”

Home prices increased 21.3% in Arizona, the most of any state. California saw a 9% increase. Prices increased
from October 2011 in all but five states — Alabama, Delaware, Illinois, New Jersey and Rhode Island.

The Phoenix-Mesa-Glendale area in Arizona had the largest year-over-year price increase of any metro area, at 24.5%. The Riverside-San Bernardino-Ontario metro area was second at 7.3%. And the Los Angeles area was fourth at 6.4%.

Excluding foreclosures and other distressed sales, home prices nationally increased 5.8% in October from a year
earlier. Those prices were up 0.5% from September, the eighth straight monthly gain.

 

Source: LA Times

7135 Pacific View Dr. Hollywood Hills, CA 90068 Open Sunday 2-4pm

Asking Price: $719,000

2bed/2bath

Stylish Hollywood Hills mid-century modern with dramatic city light views. Move-in ready with an open floor plan, fireplace, beamed ceilings, wood floors and a generous balcony that is great for entertaining. The kitchen’s design features stainless steel appliances, retro metal cabinetry, and built-in dining table. Master bedroom includes built-in cabinetry for extra storage, large closet and newly remodeled master bathroom. Attached garage is currently used as additional bonus space with office area, family room area and laundry area, which also features a frosted glass and stainless-steel break-away roll-up door. A side yard area provides private outdoor space for kids/pets, and an above-ground spa provides a place for adults to relax. This home is a true Hollywood Hills pad, but is conveniently located on a flat street with plenty of parking and walking distance to Runyon Canyon.

Open Sunday September 16, 2012 2-4pm.

Please contact Julie Kryukova at (310)402-8181 or jkryukova@gmail.com for more information, showings, and other properties in the Hollywood Hills & Surrounding Areas.

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