For the most part home prices are on the rise on a national perspective. Just last week the National Association of Realtors, NAR, reported that the average home price rose 10% to $180,000. This reflects 4th quarter to 4th quarter in 2011 to 2012.
NAR compared 152 markets in the US. In the 4th quarter of 2011, only 29 of those markets started to show price gains. By the 3rd quarter of 2012 that number jumped to 120 markets showing price gains. According to the NAR, 133 of those 152 markets have seen increases in home prices, where only 19 showed prices continuing to fall.
Chief Economist of the National Association of Realtors, Lawrence Yun, says, “Home sales are on a sustained uptrend. Home sales are being fueled by a pent-up demand and job creation, along with still favorable affordability conditions and rents rising at faster rates. Our population has been growing faster than overall housing stock, so supply and demand dynamics are very much at play.”
The top 5 markets that showed the most progress were; Phoenix - 34%, Detroit - 31%, San Francisco - 28%, Cape Coral, FL - 26%, and San Jose – 25%. Western states saw the most growth overall. 2 markets in Illinois were among the 19 markets that were showing declining prices, Kankakee - negative 7%, and Rockford – just under negative 5%.
The numbers also showed a breakdown of growth in home prices by region. The West had a 20% growth, the Midwest and the South came in almost identical at just over 9% growth, and the Northeast was lagging at 0.7%.