As home prices rise in cities across the U.S., the housing market slump appears to be a thing of the past. In addition, as home prices stabilize, it bodes well for consumer confidence, the construction industry, and the macro-economy.
According to Fiserv, home prices are expected to climb anywhere between 10 and 21 percent by the end of 2013. Average home prices are expected to rise at an annual rate of 3.9 percent over the next five years. In areas where home prices are rising, houses are being sold quickly with many sellers choosing from competing bids. Metro areas, like Detroit, Mich. and Cape Coral, Fla., which were hit hardest in the housing crisis, are finally showing telltale signs of stabilization.
The recovery of the housing market depends on the number of existing home sales, rising demand for new homes, and increased spending on home improvement due to a lower unemployment rate. Areas which have the fastest rising home prices are concentrated in the West and Northwest. Here are some of the top locations with the fastest rising home prices.
Madera, California
Homebuyers in California have found good deals in Madera. While home prices have dropped over 60 percent from their highs five years ago, experts predict home prices in Madera to jump over 21 percent through next year. Currently, homes with 2,400 square feet, three bedrooms, and three baths are being sold for approximately $127,000. Even as the prices for homes rise, they will remain inexpensive compared to the inflated prices of the early 2000s. Many homebuyers are taking advantage of this opportunity.
Medford, Oregon
One of a few Oregon cities to stage a comeback, Medford is fast becoming a popular destination for retirees. Strong buyer traffic translates into a low housing inventory and growing competition for homes at bargain prices. Home prices in Medford are expected to rise 20 percent through 2013. Even though unemployment remains at a high 11 percent, a steady influx of seniors should push the market.
Yuma, Arizona
Not only are housing prices rising steadily in Yuma, the Arizona city is a boon for businesses associated with foreign trade, energy development, and agriculture. Despite an unemployment rate of 24 percent, one of the highest in the U.S., the Yuma housing market is expected to improve; home prices are projected to rise over 16 percent in the next twelve months. With the median home price just over $100,000, many families earning the area's median income can afford a home before the price jumps.
Corvallis, Oregon
In this university town, the local economy has been surging. Unemployment is below the national average at 6.1 percent and investors are pouring into the city to buy up low-priced homes. A combination of limited supply and open space initiatives will curb development of new homes, and push current prices higher. Experts forecast the median home price of $224,000 to rise 13 percent over the next year.
For those looking to purchase a new home west of the Rockies, housing prices are predicted to skyrocket over the next year. Many who waited for the market to bottom out may lose their chance at heavily discounted homes if they wait too much longer.
Home Prices Skyrocketing in Many Areas Throughout the U.S.
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