Posted on | April 30, 2013 | 0 Comments
Average home prices rose 9.3 percent in February from one year ago, the biggest gain in Standard & Poor’s Case-Shiller 20-city index since may 2006.
Additionally, home prices showed solid increases in all 20 cities for two months in a row. “The last time that happened was in early 2005,” David Blitzer, chairman of the index committee, said.
Tuesday’s report said that Phoenix, San Francisco, Las Vegas, Atlanta, Detroit and Los Angeles posted the highest year-over-year price increases. For the Los Angeles metro market, which ranked No. 6 on the leader board, the year-over-year gain was 14.1 percent. Other cities moving into double-digit territory were Miami, Minneapolis, San Diego and Tampa.
Credit the big gains to:
1) Sparse inventory.
2) Hiatus on foreclosure activity as banks and service companies absorb provisions of the California Homeowner’s Bill of Rights that took effect Jan. 1, modify loans for some qualifying homeowners, and revert back to short-sale transactions for distressed homeowners.
3) The double-digit drop that occurred in fast-growing regions of California after the housing bubble burst.
Gary Painter, of the USC Lusk Center for Real Estate, said in a statement he sent this way on Tuesday that the latest report — the sixth of its kind that brings good news — signals a high level of stability and also shows pockets that can be considered “hot markets.”
“While the numbers and this anecdotal evidence suggest certain markets have rebounded,” Painter said prices have not shot up dramatically.
“‘Hot markets are often a result of lack of inventory rather than positive market growth, which may explain the steady prices,” he said. “As fundamentals continue to improve, however, you will begin to see more markets gaining momentum.”
REAL ESTATE: Los Angeles, hot market by Case-Shiller standards : Real Estate