Every business needs some good news as the months go on. Here at Blue Olive Properties, a Highlands Ranch Property Management company, we’ve heard of a particular story that has been a great morale booster. According to CNNMoney, home values are rising for the first time in 5 years.
In an article by Les Christie, she states that home prices have hit a bottom are finally on their way back up according to an industry report. The statistics include a nationwide 0.2% rise in home values year-over-year to a median $149,300 in the second quarter. This marks the first annual increase since 2007 according to Zillow. From that first quarter prices went up 2.1%. Zillow states that overall home prices are still down 24% from April 2007, but June 2012 has marked a fourth consecutive month increase in home value.
Christie also reports that other home price indexes have recorded gains, notably the S&P/Case-Shiller home price index. According to their latest release, home prices in 20 major markets rose 1.3% in April, marking the first monthly increase in 7 months. Christie supplies other statistics, such as a Zillow survey conveying results of a survey in 167 metro areas. Fewer than one third of the areas recorded annual increases in home values, but the size of the price gains in these areas more than offset the losses posted by the remaining two –thirds of the markets (CNNMoney).
Foreclosures are still the biggest risk to the housing market recovery. Zillow’s chief economist Stan Humphries predicts the pace of foreclosures to pick up. Humphries states, “That will translate to more homes on the market. But we think demand will rise to absorb that.” The housing market will continue to slowly recover, Zillow predicts, as median home values are projected to climb 1.1% in the next 12 months.
Excerpts taken from the original article written by Les Christie, “Home Values are Rising for the First Time in 5 Years”.
Kevin Mackessy owns and operates Blue Olive Properties, a Highlands Ranch property management company, and serves all of the south Metro Denver area. Kevin can be reached at 303-956-3507 or email@example.com. He works with new and experienced investors, and home owners, offering professional property management solutions. Kevin is also a proud NARPM member.