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Home prices rise again

By Polyana da Costa · Bankrate.com
Friday, August 24, 2012
Posted: 9 am ET

Don't believe the housing recovery is underway? Here is more evidence that home prices are rising.

A report by the Federal Housing Finance Agency, released Thursday, shows that U.S. home prices experienced the largest quarterly increase since 2005. Prices rose 1.8 percent in the second quarter, compared to the first three months of the year. They rose about 3 percent compared to the same period last year.

You may think that's an insignificant change, but it's not. At least not when you consider how depressing this report was for several years. Until the third quarter of last year, the report showed prices declining every single quarter since 2007. That's when prices increased slightly but they fell again in late 2011.

It's the first time since mid-2007 that prices increased for two consecutive quarters.

"Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter," said FHFA principal economist Andrew Leventis. "The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase."

The metro areas that experienced the biggest jump in prices include Miami, Phoenix, Los Angeles, San Diego, San Francisco and Tampa.

The top three states where prices increased the most during the last 12 months were Arizona, Idaho and Florida. I guess you can say these states are lucky, but not when you look back five years ago. Take Arizona, for example, where home prices increased 12.93 percent in the last year but are still more than 41 percent lower than they were five years ago. Florida is in a similar situation.

Now, here is a lucky state: North Dakota, where prices are up more than 17 percent compared to 2007. What's in North Dakota? Farms, cows and a lot of oil. There is an oil boom in the region and that's contributing to the surge in real estate values, as the oil industry generally offers high-paying jobs.

So if you want a high-paying job in a booming real estate market, you know where to move to.

Me? I'll stick with Florida's foreclosures and hurricanes.

Follow me on Twitter @Polyanad

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6 Comments
fred barlow
August 29, 2012 at 5:04 pm

our gov will help foreigners before they will help their own the gov sold us out to the forigners just look at the job market our hole gov sucks from the citys to the white house .or should we call it the home for sell outs to americans

fred barlow
August 29, 2012 at 5:00 pm

there is nothing out there for the poor or retires ony like they say middle class where dose it stop

fred barlow
August 29, 2012 at 4:58 pm

until we get rid of this bad gov we have china will own us thanks to dec and rep all are there for their seft.

Dee
August 29, 2012 at 4:17 pm

Loan progams for those with poor credit may be nudging up the market but it will likely tank again...How sad that we get to observe many more people lose their homes. All because of those who claim to care, with supposed homeownerhip for all.

As for me, forget the hurricanes and foreclosures, not a very happy place!

psadie
August 29, 2012 at 3:44 pm

The prices are up due to the very high end real estate markets where foreigners are looking to park their money because of the global downturn. Europe, China etc. The average market is still depressed with more foreclosures on the way.