The latest news from the CoreLogic, a national provider of real estate statistics, is that the home price index has increased 3.8% on a national level – the largest increase since 2006. The figures include distressed properties. What does this mean?
A home price increase is good for the housing industry, as it means that housing is on the road to recovery. This is great news for the economy. What will be interesting to see is how the news affects home sellers. Either we will begin to see more inventory on the market, which is desperately needed to meet demand, or we will continue to see low inventory as sellers wait for the market to climb.
Unfortunately there will not be any drastic increases in price – it will be gradual. Hopefully those sellers who are sitting on the proverbial fence waiting to sell will realize this shortly, and then list their homes anyway. Lack of inventory is one of our biggest challenges right now in real estate, but undoubtedly is one of the reasons for the price increase.
The future index measures by CoreLogic indicate that sales will rise, moving forward, 4.6% on a year to year basis from August of 2011, and at least 0.6% on a month over month basis from July of 2012. These predictions are derived from measuring multiple listing service (MLS) data that measure price changes in prior months.
The 5 states with the highest levels of appreciation, including distressed properties, were Arizona, Idaho, Utah, South Dakota and Colorado.
In North San Diego county we have seen a slight price decrease (for attached and detached homes) in median price, from $403,500 to $395,000, for the month of July, compared to July of last year. San Diego county a as whole enjoyed a price increase of 1.28% from June to July of 2012, with a year to year increase of 5.33% from July of 2011.
As always, it is imperative to focus on your specific neighborhood if you are interested in specific sales data, as information varies depending on where you are located. The good news is that most areas across the nation are experiencing price increases, which is a great sign for the housing market and the economy.