JUPITER, Fla. (PRWEB) November 09, 2012
CoreLogic this week reported another gain in the average price of a U.S. home, but this increase comes in on the ledger as the largest in six years.
The real-estate analysis firm said the five-percent jump – the biggest since July of 2006 – represents yet another rise on the recovery of the housing market and a sign of good things to come. All-important price increases, no matter how small, help activate the market by increasing optimism in homeowners and serving as an enticement for homebuyers. Simply put, it adds momentum.
Rob Thomson, managing partner of Waterfront Properties and Club Communities, said the slow surge in property values will result in a rush of activity in South Florida this season.
“It’s no secret there will be inflation, and buyers will want to beat it,” Thomson, who specializes in Loxahatchee River property sales, predicted.
CoreLogic executives agree and said the optimism, nationawide, will extend through the Spring.
Another key indicator of a robust recovery is the Standard & Poor’s / Case Shiller price index. The index follows 20 cities in the United States and found that home values there rose two percent during August, the latest month for which figures are available, compared with August of 2011. Analysts at the company said the August-to-August increase was markedly faster than the July-to-July increase. The Standard & Poor’s / Case Shiller price-index increase is the fifth in as many months.
More good news: U.S. homebuilders had more starts on both single-family homes and apartments in September that in the past four years. That, coupled with a run on building permits, signals confidence by builders that home sales are on the rise. They might be right. Sales of new homes in September outpaced the two previous years, according to CoreLogic.
The low-mortgage situation also is helping potential buyers, especially when it comes investing in South Florida luxury real estate.