A recent report made available by the National Association of Realtors indicated that U.S. housing prices made their largest yearly gain in nearly two and a half years. The report, which cites Clear Capital’s Home Data Index Market data through December, 2012, suggests a very strong resiliency nationwide.
Home prices are expected to increase by 2.1 percent in 2013. Director of research and analytics at Clear Capital, Alex Villacorta, says, “Overall the housing recovery still shows evidence of pushing ahead.” Villacorta goes on to say, “Quarterly home prices mostly mirrored those of last month and suggest that some buyers took pause in the initial winter months. Yet, looking back over 2012, national yearly price gains of 4.9 percent are still strong.”
The 2013 U.S. Housing Market Outlook
Villacorta says that while the 2013 U.S. market should see positive gains nationwide, growth will most likely happen at a modest pace, keeping in mind that the most recent measured gains a relative to market lows at the start of the year. Starting fresh, with a higher price floor in 2013, naturally, it will be hard to match the same amount of gain that was seen prior to 2013.
But even with pricing gains, home buyers need not worry that all those awesome deals will be going away. Indeed, says Villacorta, there will be no shortage of housing deals nationwide to satisfy what is expected to be a steady demand by both home buyers and investors alike.
According to Clear Capital, the western area of the country has been at the leading wave of recovery, posting gains in home prices of as much as 11.8 percent versus the preceding 12-month period., and even 2.1 percent most recently in December, 2012.
The ramp-up in pricing gains is very much relative to a 2012 market that was hard-hit at the start of the year. The modest outlook for 2013 in part assumes buyers will require time to adjust to rising prices.
The southern U.S. market posted a 4 percent gain in prices from December 2011 to December 2, while the Midwest saw a 3-percent gain versus the preceding 12-months. During this same period, prices for Central Indiana homes climbed 7.1 percent, from December, 2011 through December, 2012, according to recent market report data.
The Northeast saw a 1.5-percent increase versus the previous year.