If you’re surprised at the sudden increase in your home’s value, don’t be. The housing market seems to be recovering well, although not at the same pace as employment.
Home prices are increasing at slower rates and this is actually good news, according to the leading measure of US residential real estate prices S&P Case-Shiller Home Price Indices. S&P Case-Shiller, a subsidiary of S&P Dow Jones Indices, tracks real estate values nationally and in top 20 cities and regions across the country. These major areas include Seattle, California, Florida, Nevada and other metropolitan hotspots. However, these higher prices have also trickled down to other regions with lower pricing regions.
House prices increased in almost all regions studied, except in Tampa, Florida and Charlotte, North Carolina where they remained fairly stable.
This is indicative of a general recovery in the real industry and housing markets, albeit a slower one that expected.Despite a 9.4% increase in May 2014 compared to 10.4% in April 2014, housing experts consider this good news for homeowners and the real estate market in general.
The report indicates that housing prices across the United States are returning to the 2004 rates. The slower, steadier rates are indicative of a stabilizing market and constant prices. Median prices for homes have increased to an average of $223,300 in 2014.
While increasing prices may make potential buyers shake their heads, this is a step towards market normalization in pricing. The increases were keenly felt in lower-income homes, as opposed to luxury or expensive homes that traditionally sell for premium rates in prime markets.
However, higher prices may also result in a decline in housing sales that may reach up to 5.8 million in 2014 as buyers begin to hesitate. However, previously owned and refinanced home sales will still remain strong.
For homeowners, this is an optimum time to sell or refinance mortgages, especially coupled with lowered 30-year mortgage rates and friendlier adjusted mortgage rates. Mortgage rates are also expected to continue to decrease up to middle of 2015.
A more optimistic labor market will also contribute to a healthier real estate industry. 2014 is considered a transitional year for the recovering real estate industry and housing market, which is expected to continue to recover. However, this study did not include renters or other housing options which many Americans have considered or are considering as part of downsizing their portfolios.
In other news, this may mean that 2015 may be an ideal time to start looking to sell, purchase or refinance an existing mortgage.