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Home prices take flight

By Judy Martel · Bankrate.com
Sunday, July 7, 2013
Posted: 5 am ET

Continuing on its upward trajectory, home prices soared 12.2 percent in May from a year ago, the most since 2006, according to CoreLogic. From April to May, they increased 2.6 percent, the 15th straight month-over-month increase.

Prices rose in 48 states, falling only in Delaware and Alabama, according to the report. Of the 100 largest cities, 97 also reported gains. The state with the largest price increase was Nevada, with a whopping 26 percent gain. It was followed by California, Arizona, Hawaii and Oregon.

Anand Nallathambi, CEO of CoreLogic, said in a statement that he expects prices to continue to rise as we enter into the traditionally busy summer homebuying season. The report predicts prices will rise by another 2.9 percent in June, for a yearly gain of 13.2 percent.

"Across the country, pent-up demand and continued low interest rates are fueling strong demand for a limited inventory of properties," Anand said in the statement.

Although interest rates have recently been trending higher, potential homebuyers may view that as a sign to quicken their pace and buy before they rise even more as the Federal Reserve scales back its bond-buying program.

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16 Comments
Kevin
July 10, 2013 at 2:03 pm

Im still waiting to see the headlines that Wall Street execs are being jailed for causing this problem in the first place.

Toya
July 10, 2013 at 1:17 pm

Are we confusing numbers here? The article said home PRICES were going up, not number of home sales. Comments about these homes being purchased at bargain basement rates or low pricing are indicative of a misunderstanding of what this article is saying. This is by no means scientific, but I live in NW Indiana and work in Chicago. Home prices are definitely going up in our area after a very long period of dropping or remaining stagnant. I've also begun to see started builders start the next phases of their development projects after letting the land sit for years. The recovery seems far from over, but it would seem the builders think they can start making money again.

Elizabeth
July 10, 2013 at 12:41 pm

The real untold issue is the number of properties still in the foreclosure process. Banks are holding on to them, keeping them on their balance sheet in the non productive loan category. The houses are now molding from the inside out. What is missing is a mandate that the foreclosure process have a specific maximum duration.

Banks are taking 6 months or more on short sales. There seems not to be a pre-approved amount short sale process. IE any amount equal to or above this is automatically acceptable. The banks unrealistic expectations of potential buyers are ridiculous. My daughter waited 3 months and finally rescinded her offer. The bigger the bank, the longer it takes.

Oil Trader
July 10, 2013 at 11:38 am

I've been watching the Delaware market and looking to purchase, so that one is correct. Randall and Cin are correct, the bottom line is that realtors set prices according to the perceived value in a property. It is all relative because one person may not be willing to pay what another is for a property. Realtors contributed very heavily to the last crash, but no one will say it publicly. Remember when realtors wouldn't show you a house unless you had a pre-appoval letter? The real estate market is fed induced just like the stock market, both are on "crack". Also
if you look at the following symbols: $HGX, IYR, and ITB which are housing and real estate, you'll see up until June 24, 2013 all three have been declining. You have an inverse relationships between home prices and these indices and etf's which is bad, they should all be moving up with the home values. So, ask your realtor why these other instruments that tracking housing and construction have been declining until recently.

American
July 10, 2013 at 10:41 am

I'd like for some of you to explain to me the "deceiptful practices" that are going on. Not rhetoric, but fact. Give me a very clear idea of what's going on that's deceitful. I highly suspect that your comments are politically motivated. You don't want the current administration to be given credit for an economic turn-around so you deny that one's actually happening. A robust economy is good for our country no matter who's in charge.

mel
July 10, 2013 at 9:47 am

I cant wait to read the next housing crisis tall tale when these HOAs explode because of their deceitful practices. I wonder what story they will spew

mel
July 10, 2013 at 9:42 am

I agree with all of you. DECEPTION is a way of life anymore. The tall tales are a tool to get people to act a certain way. The smart ones can spot a tall tale and this is just one of them!!!

cin
July 10, 2013 at 9:31 am

I agree Randall. Realtors are SalesPeople and are great at weaving tales, inciting bidding wars.... well, you name it. Not to say all practice these crafts. The old adage, " Price them low and see them go" puts some $$ in their pocket. I'm always circumspect of realtors since they have no skin in the game, just a commission.

Randall
July 10, 2013 at 6:11 am

These are for foreclosed properties that were purchased at bargain basement rates. Be careful what you hear. These reports are designed to take more of the consumers hard earned money. Save your money. The economic recovery is far from over.

Tristan Chris Heiss
July 10, 2013 at 5:12 am

bull more like 2%