FollowThis is the first time in the last seven year that home prices in the U.S have risen up to the biggest annual gain. Comparing the current growth stats with that of May 2012, we see a 12.2% rise and this point out the steady growth that the sector has been strengthening. CoreLogic, the data provider for real estate revealed this Tuesday that this growth in prices concerns 48 states in the US. Apart from the distressed sales, the yearly rate was 11.6%. The highest rise is seen in the State of Nevada where the sector rises 26% and is followed by California (a 20.2% increase), Arizona (16.9 % increase) and Oregon (15.5% increase).
The recovery this year could be attributed with the reduced foreclosures, limited properties on sale and tight inventories that are pushing the prices higher. However, national prices still remain affordable as compared to the housing boom and this has attracted homeowners and investors. CoreLogic also states that the increase between the months of April and May was 2.6% and this is the fifteenth that a consecutive monthly increase is seen. The housing sales are expected to rise even higher with the number of singed contract for property acquisition getting to a peak level since December 2006.
Survey results released by the University of Michigan suggests that this is the best time to buy a home in the US since both the prices and the rate of homes are just starting to rise. Anand Nallathambi, the CEO of CoreLogic believes that this trend is going to continue and prices would rise all through the summers. The report also forecasts 2.9% increase for the month of June and a yearly gain of 13.2%. With banks too extending mortgages, getting a loan is not a big deal.
