Home prices are getting higher all over United States even as the nation’s unemployment rate is going down. All in all, there is remarkable growth in the home prices for the U.S market. Most of the home prices jumped 5% all over the U.S. According to CoreLogic, there was a decline in this gain at the end of September which reflects the end of the home buying season.
“Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market”, said CEO of CoreLogic in the report.
Phoenix, Arizona (AZ) is the leading metro area with an outstanding gain compared to home prices all over United States. Phoenix has gained 22.1% for home prices since July 2006, and it jumped 35% through-out last year. Idaho gained 13% in home prices, and 11% in Nevada. Due to the highest gain in Phoenix compared to the other metro cities, Arizona has ranked No. 1 in the nation for increasing housing prices.
The year-over–year gain in Phoenix area is remarkable. The nations market is also shown as exaggerated here. Rates will be going higher in metropolitan Phoenix in coming years, as predicted by the real estate professionals.
“Many (Phoenix-area) homes dropped to one-third of their value in 2005, and I have no doubt that we will be right back to those levels”, said Matt Widows, CEO of HomeSmart- the largest residential estate agency in Arizona.
Another Arizona’s Economist Elliot Pollack has forecasted the rise in home prices in Arizona. He said that there would be a gain of 50% up till 2015-16. After that that the prices that have fallen down in past years could be recovered, and go up-to the level they were at in 2005.
At this point of time, the median home price in Arizona is around $150,000, so it would have to increase 50% more till 2015- 16 to reach at an average price of $225,000. This price would be almost the same as the price of the median home in 2005 i.e. $228,000.
Due to the abrupt rise in home prices, buyers are competing for tightened housing lists for sale. Sellers are getting multiple offers and they are trying to make the most of the current market situation. However, it will take a few years before the state and, individuals can recoup any losses.