The latest S&P/Case-Shiller Composite index continues to show a positive trend for Home Prices. The S&P/Case-Shiller 20-City Composite index posted a year-over-year increase of 8.1 percent. This rise is largest year-over-year gain in January 2013 since the summer of 2006.
The S&P/Case-Shiller Composite of 20 Home Price Index is a value-weighted average of the 20 metro area indices. The Phoenix Metro Area posted a 23.2 percent year-over-year increase, followed by San Francisco at 17.5 percent and Las Vegas at 15.3 Percent. The San Diego Metro Area posted a healthy 9.8 percent year-over-year gain in January 2013.
All 20 metro areas showed a positive gain year-over-year in January 2013. The highest gain being posted in Phoenix and the lowest gain in New York.
This latest report on S&P/Case-Shiller Composite index for January 2013 continues to show positive trends in the US Real Estate market. Some of the metro areas which were deeply impacted by the foreclosure crisis are beginning to rebound. Data from Phoenix, Las Vegas, Miami and San Diego suggest the recovery may be rooted on solid fundamentals and not an anomaly on the market. Some of the factors driving this market are
Buyers which may have lost their homes in 2008 and 2009 are coming back in the market and creating demand for a limited number of properties in the market.
Low Mortgage Rates are additional drivers to this demand and will likely see this trend continue unless we see changes to our current Federal Reserve stance.
A continued lack of supply of homes for sale. Perhaps Sellers are waiting to see how high prices will reach before making the decision to sell.