In a report released by CoreLogic, home prices in the U.S rose 12.2% in May compared to May 2012. This report by the real estate data provider shows an increase that is the highest in 7 years! The report also shows that 48 states reported home price increases with only Alabama and Delaware experiencing a decrease. Price gains were reflected in 97 of the 100 largest U.S. cities in May as well. CoreLogic also reported that home prices increased from April to May at a rate of 2.6% which is the 15th consecutive month that prices have increased from the previous month.
Locally, Dallas home prices rose 10.2% compared to May 2012 and Texas overall increased at a rate of 8.5%.
Factors such as low mortgage rates, greater demand, and limited inventories have all contributed to the increase. Another contributing factor is that sales of foreclosures and short sales were at 4 year lows for the second month in a row.
The expectation is that homes sales will continue to increase as many homebuyers signed contracts to purchase in June and those sales will close in July and August. As interest rates continue their slow rise higher, this could also encourage more buyers to purchase a home now instead of waiting.
The complete article by Steve Brown is in today’s Dallas Morning News in the Business section.