February 28th, 2013
More homebuyers are entering the market in early 2013 as home prices continued to march upward in a movement that began in the final three months of last year.
The Federal Housing Finance Agency announced that home prices in the fourth quarter of 2012 experienced a 1.4 percent increase, according to its seasonally-adjusted purchase only house price index. On a year-over-year basis, seasonally adjusted home prices increased 5.5 percent between the fourth quarter of 2011 to the fourth quarter of 2012. The report represents positive news for both homeowners and buyers.
“The fourth quarter was another strong one for house prices, as it was the third consecutive quarter where U.S. price growth exceeded one percent,” said FHFA principal economist Andrew Leventis. “While a significant number of homes remained in the foreclosure pipeline, the actual number of homes available for sale was very low and fell over the course of the quarter.”
Rising home prices may prompt more potential buyers to get off the sidelines and work with a mortgage service company to get the home buying process started. Rates are still hovering near record lows and many consumers want to purchase homes before prices rise.