US Home Values Continue To Rise
As the US continues to see gains in the housing market, data shows that US home values have seen increases for the past 17 consecutive months. Still 26 percent below peak prices in 2006, housing is gunning for a comeback — and successfully.
In this continued upswing, we are also seeing an increase of two types of buyers, making up a large percentage of current sales. These two buyers are all cash buyers, and "institutional investors,” who are buyers of 10 or more properties per year. All cash buyers made up 45 percent of all home sales in the month of August, up 15 percent from the previous year — and investors made up 10 percent of residential transactions in August, up 1 percent from 2012.
California led the pack with largest annual increases, at 32 percent increase over sales in 2012. Next on that list was Nevada with 26 percent, Georgia up 21, Arizona with 20, and New York at 19 percent gains. It should also be mentioned that the average residential sale price was $175,000 in August, up six percent from 2012.
Distressed properties made up about one quarter of all sales during the month of August, with the average distressed home value trading at $116,000, three percent below 2012 values.
The story of August home sales in the US was really one of "cash is king." Many of those who could, bought properties in all-cash deals to avoid the hassles of rising mortgage rates. This trend contributed, in large part, to the 17th consecutive month of rising home values throughout the US.
How do you feel about the consecutive monthly gains in US home values? Are you seeing this type of activity in your local market?
Leave us a comment in the comment section below, with your thoughts and findings.
Photo Courtesy of Dj Crazy Gabe’s Flickr