February 28th, 2013
Three national home price composites in the Standard & Poor’s/Case-Shiller Home Price Indices rose during 2012, lending support to other industry reports that suggest the housing market is recovering.
The national composite, which covers the nine divisions that make up the Census Bureau, posted an increase of 7.3 percent for 2012. Meanwhile, the 10- and 20-City composites, which include major metropolitan statistical areas in the U.S., also swelled by 5.9 and 6.8 percent, respectively.
“Home prices ended 2012 with solid gains,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Housing and residential construction lead the economy in the 2012 fourth quarter. In December’s report, all three headline composites and 19 of the 20 cities gained over their levels of a year ago. Month-over-month, 9 cities and both Composites posted positive monthly gains. Seasonally adjusted, there were no monthly declines across all 20 cities.”
A rise in home prices may prompt more sellers who were previously reluctant to list their homes for sale. This may give buyers more inventory and price ranges to choose from in the future. Working with a mortgage consultant can help potential buyers determine the amount of financing for which they qualify and narrow down the scope of properties to explore.