Home » Blog » housing-prices-on-the-rise-almost-everywhere
Housing Prices on the Rise Almost EverywhereJune 12, 2013
These numbers are also up 1.9% from the fourth quarter of 2012, and all told, 41 of the 50 states (as well as the District of Columbia) saw a jump in prices from last year's fourth quarter.
Meanwhile, an S&P/Case Shiller study gave further evidence to an uptick in housing growth. The data showed that home prices increased by the most in almost seven years in March, with a nearly 11 percent year-over-year increase from the same month in 2012. Also, according to Pro Teck Valuation Services, the average median sale as of May 1 was $212,869. At the same time last year, it was $190,278 (source).
The housing recovery, which began last year, is having a positive effect on the economy. Because of the simple law of supply and demand, the lack of inventory (due to more sales and fewer foreclosures) drives up the prices. In addition, the historically low interest rates have made buying a home even more appealing. Thus, it’s no surprise that Reuters is predicting continued price gains for the remainder of the year and beyond – though the pace at which the accelerations are taking pace may decline a bit.
A recent New York Times article points to another reason for the increased growth: Wall Street. Large investment firms have bought up large amounts of properties in financially depressed areas, and are using them as investment chips. For example, Blackstone has acquired about 26,000 homes in nine states, while Colony Capital is spending $250 million per month and already owns more than 10,000 properties.
Which states made the largest jumps? It is unquestionably the West. Arizona, California, Idaho and Nevada all saw substantial price gains of more than 15% from a year ago.