Home Values Reaching New Highs

After only 2.5 years from the end of the worst recession since the Great Depression, housing prices are steadily coming back.  Some housing markets are actually experiencing new highs in home prices indicating just how robust our housing recovery is.

 

Recent reports show in approximately 20 percent of the metro housing markets, the decline in home values is gradually being erased. In 60 of the over 300 areas covered by Zillow, it is reported that homes prices either already have or are expected to exceed pre-recession peaks in the next year.  These metro areas include San Jose, Dallas, Houston, Denver, Pittsburg, San Antonio & Austin.  

 

In the majority of metro areas, housing affordability remains strong, but in a handful of areas like San Francisco, San Diego, Los Angeles and San Jose, housing has become unaffordable.  Mortgage rates remain low which helps the affordability issue, but some potential homeowners may have to seek housing further away from the urban areas in order to be able to buy.


As buyers look further away from urban areas to purchase an affordable home, we may see prices decrease in these urban areas because the demand for those homes may weaken.

 

Overall, this is a good report for home sellers who are ready to put their home up for sale.  Buyers are looking and they are also buying in today's market.  A word of caution to sellers is be careful not to get ahead of the rise in home prices as buyers are still being careful not to pay what they perceive as too much for the property.

 

The expected increase of home prices in 2014 is 5-6 percent.  For example, if  your home is valued at $600,000 today, it may or may not be worth as much as $630,000-$636,000 this time next year.  Currently, low  mortgage rates are holding pretty steady, but they are expected to go up and that could slow things down again. 

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.