By Tim McLaughlin, Sr. Vice President, Weichert Financial
81% of poll respondents to a Redfin poll believe home prices will rise in 2013. Those in the 81% are not far off, as the Federal Housing Finance Agency reported just that in its latest house price index. In fact, from November 2011 to November 2012, prices rose 5.6% and are predicted to continue their upward trajectory into 2013.
Because of this, some sellers are more inclined to wait. More than 34% of sellers indicated that missing out on future price gains was a major concern in selling today.
These future price gains have buyers wanting to get in now too, before prices jump much higher. Of those surveyed, 54% believe now is a good time to buy.
Recently, the Mortgage Bankers Association noted that its home purchase index grew 3% from the prior period, a number that is expected to keep growing in the year ahead as prices continue to rise.
We sit in a very transitional phase in housing right now. With mortgage rates anticipated to perhaps creep up by the end of the year, buyers are doing whatever it takes to get into their home now. However, prices are continuing to climb, and many sellers don’t want to sell prematurely, potentially missing out on greater price appreciation.
Only time will tell, but for those looking to buy, it is important to remember that rates can change within a day and the time to buy really is now.
From the above, U.S. house prices rose 0.6% on a seasonally adjusted basis from October to November, according to the Federal Housing Finance Agency’s monthly House Price Index (HPI). The previously reported 0.5% increase in October was revised upward to a 0.6% increase.
For the 12 months ending in November, U.S. prices rose 5.6%. The U.S. index is 15.2% below its April 2007 peak and is roughly the same as the August 2004 index level. National home prices have not declined on a monthly basis since January 2012.
Secondary Marketing Takeaways: In addition to the good news on the housing appreciation front from FHFA, CaseShiller had some positive appreciation data of their own. Home prices in 20 U.S. cities rose in November from a year earlier by the most in more than six years, indicating the U.S. housing rebound is gaining ground and significantly more traction.
The S&P/Case-Shiller index of property values increased 5.5% from November 2011, the biggest year over year gain since August 2006, a report showed today in New York. The median projection of 30 economists surveyed by Bloomberg called for a 5.6% advance.
With the spring market right around the corner, with inventory at the most manageable level in years, and with interest rates still starting with a 3 (and with a 2 on 15 year structures), there has never been a better tim