Business Breaking News

The Canadian Press - ONLINE EDITION

Tight supply, rising demand pushes up US home prices in January by most in nearly 7 years

By: Christopher S. Rugaber, The Associated Press

Tuesday, Mar. 5, 2013 at 8:57 AM | Comments: 0

In this Dec. 20, 2012 photo, a home is for sale in North Andover, Mass. THE CANADIAN PRESS/AP, Elise Amendola

WASHINGTON - U.S. home prices jumped in January, a sign the housing market is gaining momentum as it nears the spring selling season.

Home prices rose 9.7 per cent in January from a year ago, according to data released Tuesday by CoreLogic. That's up from an 8.3 per cent increase in December and the biggest annual gain since April 2006.

Prices rose in all states except Delaware and Illinois. And prices increased in 92 of the 100 largest metro areas, up from 87 in December.

Home prices also rose 0.7 per cent in January from December. That's a solid increase given that sales usually slow over the winter months.

Rising demand combined with fewer available homes is pushing up prices. Sales of previously owned homes ticked up in January after rising to their highest level in five years in 2012, according to the National Association of Realtors. At the same time, inventories of homes for sale fell to a 13-year low.

The states with the biggest price gains were Arizona, where prices rose 20.1 per cent, followed by Nevada, with 17.4 per cent, and Idaho, with 14.9 per cent. California and Hawaii rose 14.1 per cent and 14 per cent, respectively.

The cities with the biggest gains were Phoenix, Los Angeles, Riverside, Calif., New York, and Atlanta.

Nationwide, home values were still down more than 26 per cent from their peak in April 2006 through January, CoreLogic said. But in some states prices have recovered a lot of lost ground. In 15 states, home prices are within 10 per cent of their peak values, CoreLogic said.

There have been other recent signs that the housing market is going strong. A measure of the number of Americans who signed contracts to buy homes rose in January from December to the highest level in more than 2 1/2 years. That suggests sales of previously occupied homes will keep rising in the coming months.

Steady increases in prices help fuel the housing recovery. They encourage some homeowners to sell homes and entice some would-be buyers to purchase homes before prices rise further.

Higher prices can also make homeowners feel wealthier. That can encourage more consumer spending, which drives 70 per cent of the U.S. economy.

Rate this
This article has not yet been rated.

We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

You can also register and/or login to the site and join the conversation by leaving a comment.

Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Comments

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Comment

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.