Boston, MA 02/12/2013 (wallstreetpr) – Fourth-quarter recovery in the housing sector saw home-prices rise in almost 88% of U.S. cities.
With banks offering lower rates of interest and the slowly improving condition of the job market, home-rates are seeing an upward trend owing to the increasing demand. The average price of a single-family home in the fourth quarter was up by 10% from 2012. This increase in the prices was the highest since 2005.
The National Association of Realtors’ chief economist said, home sales are on a “sustained uptrend” and being fueled by a “pent-up demand and job creation, along with still-favorable affordability conditions and rents rising at faster rates”.
As many as 1.82 million homes were up for re-sale during the fourth-quarter.
Phoenix recorded the highest increase in the price rates, followed by Detroit and San Francisco.
Michael Orr, the director at Center for Real Estate Theory and Practice of the Arizona State University said that short sales and foreclosed homes were down by a significant number. He added, “The more expensive types of transactions, like normal resales and new-home sales, went up. As a result, new-home construction, which was at rock bottom in 2011, also really came roaring back in 2012.”
Private equity investors are competing with one another by renting out foreclosures bought at a low-rate. Crisis in the foreclosure-inventories have seen steep increase in prices in cities such as Cape Coral, Las Vegas and Riverside.
Price increase in the eastern metropolitan area was lesser. The biggest declines were observed in New York’s Kingston area; with a 7.9% decline, followed by Kankakee in Illinois; 7% and Erie, Pennsylvania; 6.1% drop.
The median price in the western states was observed to be $245,200; up by almost 20%.
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