Latest analysis shows that in spite of the fact that the overall economy of United States still remains stunted, there has been an increase of 2 percent in the prices of residential property. Out of all the major metros, one-third are said to have made double digit annual profit, whereas the bottom 15 metros saw the prices stabilize mostly. This was reported in the July Home Data Index. If you’re on the lookout for a new home, then it just became more expensive.
The last rolling quarter saw the home market defy the drag of a softening economy with increasing profits of over 2 percent. This is mostly because the pool of buyers is expanding every day. Even though there are significant risks involved, yet it’s being presumed that housing now has the potential to enter a loop of positive feedback. Moreover, it’s assumed that price increases should actually lead to an increase in confidence that is badly needed given the tight economic situation all around. This could actually motivate the buyers, thus propelling the recovery in spite of the slowdown that’s prevalent outside the housing market.
Now, the previous quarter saw a gain of 1.7 percent which was followed by the 2 percent gain of this quarter. The West had a growth of 4.4 percent, whereas the Midwest had a 2.1 percent growth quarterly. At the same time, the South also showed a growth percentage of 1.5, and the Northeast came up with a price growth of 0.4 percent. This was actually a slight step back from last month’s 0.8 percent quarterly gains.
Alex Villacorta, director of research and analytics at Clear Capital says that since October 2011, this is the first time that there has been seen such robust growth across all the regions. He also points out the fact that most of these regions have experienced quarterly gains over the past few months that has again fuelled yearly gains.
In July 2012, the yearly gains of the larger national market actually expanded to 2.2 percent. This was 0.5 percent higher than that of June 2012. There was obviously a boost in home prices at the national level as well. The West saw home prices reach 6.2 percent over the previous year. The Northeast also contributed to this overall national growth.
In fact, July 2012 was the third consecutive month that actually marked national yearly gains. The longer term price levels were seen to be this strong back in September 2010 and that was mostly because the First Time Homebuyer Tax Credit pulled it higher on a temporary basis.