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REALTOR®: Home prices finally recovering nationwide

Wednesday, July 17, 2013

Home prices are not just recovering in Silicon Valley but around the county, as well. The upward trend in prices may continue for a while, but may not last as mortgage rates and inventories rise.

According to Trulia's Price Monitor, year-over-year asking home prices rose 10.7 percent nationwide in June. Excluding foreclosures, prices jumped 11.4 percent year-over-year, a sign that the housing market is moving toward a full recovery.

According to the online real estate website's analysis, nationally, asking home prices bottomed in February 2012, but the turnaround has been uneven. Prices first rebounded two years ago in Silicon Valley and some other housing markets whose economies quickly recovered due to strong job growth. Prices started slowly recovering in other parts of the country three to six months ago. With the housing recovery in full swing, asking prices rose in 99 of the 100 largest metros.

The Trulia Price Monitor is an early indicator of trends in home prices. Based on the for-sale homes and rentals listed on Trulia, the Trulia Price Monitor take into account changes in the mix of listed homes and reflect trends in prices for similar homes in similar neighborhoods through June 30, 2013.

"Rising home prices have swept the country," said Jed Kolko, Trulia's chief economist. "Local markets that suffered most during the housing crisis are seeing the biggest price rebounds today. Now even markets that escaped the worst of the bust, like Chicago and Baltimore, are seeing prices climb."

Real estate experts say prices will eventually slow down as mortgage rates rise and inventory grows. Already in California home sales pulled back in June, according to the California Association of REALTORS® (C.A.R.). The state REALTOR® group's recent report indicates sales of single-family detached homes in June were down 3.8 percent from May and down 3.7 percent from June 2012.

C.A.R. vice president and chief economist Leslie Appleton-Young said the June decline in home sales was attributed partially to the hike in interest rates in recent months. "The average 30-year fixed rate had been stabilizing at around 3.5 percent since the beginning of the year, until it jumped more than 50 basis points in June to reach above the 4 percent mark for the first time in more than a year and a half. This rate increase portends a somewhat higher rate environment going forward as the Fed mulls over the start of its tapering off program in response to positive signs from the economy."

A recent MLSListings Inc. report noted compared with June of 2012, single-family home sales in Santa Clara and San Mateo counties were down 8 percent and 10 percent, respectively. Santa Clara County saw its June median price decline 2 percent from the previous month.

"This could be an indication that we are moving into a more balanced market. While still a seller's market, inventory levels continue to grow and that is generally good for home buyers, though rising mortgage rates could make owning a home more expensive than a year ago," said Carolyn Miller, president of the Silicon Valley Association of REALTORS®.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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